By Greg Wright

Published 19th Jan 2023, 08:46 BST

The business said that its UK and US units had driven an 11 per cent fall in sales across the group in the four months to the end of December.

The decline did not come as a surprise to either Boohoo or its shareholders, who had been warned that sales were set to drop over the period.

As a result, Boohoo was able to say on Thursday that it expects earnings before interest, tax, depreciation and amortisation to measure up to market expectations.

File image of a boohoo store, as the fashion business has confirmed that it saw a big drop in sales in the last four months of 2022 as its US and UK businesses suffered.

Revenue is set to drop by around 12 per cent over the financial year, the business said.

So far, in the 10 months to the end of December, revenue dipped from a little under £1.7bn to just over £1.5bn, a 10 per cent fall.

“Performance in the period is in line with expectations and reflects the normalisation of the channel shift online over the last 12 months, but demonstrates the significant market share gains the group has made over the last three years,” said chief executive John Lyttle.

“Looking ahead, whilst the demand outlook is uncertain due to macro-economic factors, cost inflation is expected to begin to moderate in the second half of the year.”

So far this year, the US has been by far the worst-performing market for Boohoo. In the 10 months to the end of December revenue dropped 23 per cent to £306.3m when compared to the same period a year earlier.

In the UK – Boohoo’s biggest market – revenue fell by 11 per cent.

Boohoo reports sales drop as US and UK markets weigh on performance