Boohoo’s revenue fell by 23% to £297mn over the first half. Its Debenhams brand was the only area of growth, but this was more than offset by high double-digit declines at Karen Millen and its Youth Brands.
The group reported an underlying operating profit of £2mn, compared to a loss of £9mn in the prior period. The improvement was driven by heavy cost cutting, which has seen its fixed cost base nearly halve.
Free cash outflows improved from £39mn to £22mn. Net debt fell by £32mn to £111mn.
Full-year cash profit (EBITDA) is expected to grow to around £45mn (2025: £42mn), followed by double-digit growth in 2027.
The shares rose 15.4% in early trading.
Our view
HL view to follow.
Boohoo key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.