British online fashion retailer boohoo has reported a 10% drop in revenue to £882.4m ($949.4m) in the first half (H1) of fiscal 2023 (FY23), compared with £975.9m ($1.05bn) in the same period of the prior year (FY22).

In the six months to 31 August, the retailer’s revenue in the UK declined by 4% and its international revenues fell by 17%.

The retailer’s gross profit for the six-month period was £463.5m, down by 13% from £533.3m a year earlier.

Its gross margin also dropped to 52.5%, down by 210 basis points from H1 2022.

boohoo’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the six-month period were £35.5m, down by 58% from £85.1m in FY22.

The company’s first-half adjusted diluted earnings per share (EPS) also dropped by 92% from 3.84p to 0.30p year-on-year.

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By GlobalData

Boohoo Group CEO John Lyttle said: “Performance in the first half was impacted by a more challenging economic backdrop weighing on consumer demand.

“Over the last three years, the Group has seen significant gains in market share achieved across our brand portfolio, particularly in the UK where our price, product and proposition resonate strongly with customers.”

For the full year, boohoo expects its adjusted EBITDA margins to be between 3% and 5%, down from its previous prediction of 4% to 7%.

Lyttle added: “We have a clear plan in place to improve future profitability and financial performance through self-help via the delivery of key projects, which will stand us in good stead as macro-economic headwinds ease. We remain confident in the long-term outlook, as we continue to offer customers unrivalled choice, inclusive ranges and great value pricing, giving them even more reasons to shop with us.”

Last month, boohoo announced a strategic investment in beauty product company Revolution Beauty Group.