Boohoo Group PLC (AIM:BOO) plummeted to a pre-tax loss in the year to 28 February 2023.
The online retailer reported a loss of £90.7mln compared to a pre-tax profit of £7.8mln the previous year.
Sales also fell by 11% to £1.7bn, although revenue was 43% greater than in 2020, the last pre-pandemic reporting year.
Gross margin slipped by 190 basis points to 50.6%, reflecting Covid-related pressures on raw materials and freight, as well as stock clearance, according to a statement.
Boohoo said it reduced its inventory level by 36% on the 2022 financial year, or by £101mln in absolute terms.
Cash generation remained “strong” with £30.2mln free cash flow which is supporting growth ambitions.
The company is targeting an underlying earnings (EBITDA) margin of between 6% and 8% and a return to double-digit revenue growth through unlocking cost deflation and overhead efficiencies.
“Looking ahead, we are investing for the future growth of this business with automation, local fulfilment capacity in the US and building global brand awareness,” said chief executive John Lyttle.
“Our confidence in the medium-term prospects for the group remain unchanged, and as we execute on our key priorities we see a clear path to improved profitability and getting back to double-digit revenue growth,” he added.