Boohoo losses hit £160m as China rivals go cheaper

STRUGGLING fast fashion firm Boohoo left the City in doubt about its recovery plan this morning as losses ballooned to £160 million and sales slid by double digits across all of its regions.

- Daniel O’Boyle

Revenues at the online retailer, which also owns Debenhams and the Pretty Little Thing brand, were down 17% to £1.46 billion for the year to 29 February, while the losses were 70% higher than last year.

The business said the downturn came “as group performance continued to be impacted by a difficult macroeconomic environment”.

Weak consumer demand has only added to the problems facing Boohoo.

Like recent fashion casualty Ted Baker and on-the-brink Superdry, Boohoo’s clothes have been falling out of style. At the same time, it faces stiff competition from Chinese retailers Shein and Temu, which sell their clothes at prices that homegrown retailers have struggled to compete with.

The business has been pursuing higher margins, but the sales slowdown suggests that it is struggling to do so without losing customers.