Boohoo CEO John Lyttle is stepping down amidst a significant downturn in overseas sales.
- The company’s overseas sales fell by 21%, leading to a 7% drop in gross merchandise value.
- Boohoo’s performance has been overshadowed by competitor Shein’s rapid growth.
- The company’s shares have plummeted 88% over the last five years.
- Boohoo is exploring strategies to unlock shareholder value amidst financial challenges.
Boohoo’s CEO, John Lyttle, has announced his resignation following a marked decline in the company’s overseas sales. Lyttle, who held the position for five years, has seen the company’s share value drop by approximately 90% during his tenure. Despite these challenges, Lyttle has expressed pride in leading the group and commitment to supporting the Board in finding his successor.
Boohoo has reported a significant 7% reduction in its gross merchandise value, amounting to £1.2 billion for the six months ending in August. This downturn is primarily due to an 18% drop in sales in the United States and a 21% fall in other international markets. Conversely, its UK sales experienced only a modest decline.
In contrast, Chinese e-commerce giant Shein has witnessed a substantial rise in turnover. Shein’s sales have surged by approximately 40% in the UK over a previous 16-month reporting period, positioning the company for a potential London IPO and elevating its status among the leading e-commerce firms in the region.
Boohoo is grappling with a sharp 88% drop in stock value over the past five years, a period marked by post-COVID trading difficulties and scrutiny over its business practices. The company’s current market capitalisation stands at approximately £400 million.
To navigate its financial hurdles, Boohoo has secured a new £222 million debt facility. This includes a £125 million revolving credit facility, extending to October 2026, and a £97 million term loan due by August 2025. The interest terms are reportedly more favourable compared to previous agreements, contributing to potential financial relief for the company.
Boohoo’s resignation of its CEO and strategic financial manoeuvres reflect efforts to overcome recent setbacks and reposition the business for future growth.
