Boohoo Group, the London-based online fashion retailer, is bracing for a 12%-17% annual revenue drop, despite maintaining its adjusted EBITDA target with margins between 4%-4.5%. The news comes after the company reported a pretax loss of £26.4 million ($34.5 million), an increase from £15.2 million ($19.9 million) last year. The company's market cap is currently at $26.92 million, with a P/E ratio of 11.4, according to InvestingPro.
The company also revealed that its revenue has decreased to £729.1 million ($952.8 million) from £882.4 million ($1.15 billion). The revenue figures align with InvestingPro's data, showing a revenue of $19.53 million for LTM2023.Q2, marking a growth of 22.87% for the same period. Boohoo experienced a significant inventory reduction of £94 million ($122.8 million) and plans a capital expenditure of £75 million ($98.0 million).
Boohoo is targeting more profitable sales as part of its strategy to enhance profitability and growth, despite experiencing declines in sales - 19% in the U.K., 15% internationally, and 10% in core brand revenue. This strategy is in line with one of the InvestingPro Tips, which suggests that the company's management has been aggressively buying back shares.
CEO John Lyttle expressed confidence in the company's strategy, indicating that the focus on more profitable sales, along with the planned capital expenditure, forms part of their approach to navigate through the current financial challenges and position the company for future growth. This approach seems to be paying off, as indicated by the company's significant return over the last week, another point highlighted by the InvestingPro Tips.
For investors seeking more detailed insights and tips, there are additional InvestingPro Tips available at InvestingPro. These tips, backed by real-time metrics and data, offer a comprehensive outlook on the company's performance and future prospects.
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