The CEO of Boohoo is to step down after the British e-commerce firm reported a sharp drop in the value of its overseas sales.
John Lyttle, who has been at the helm of the London-listed business for the past five years and previously worked as chief operating officer of Primark, has presided over a roughly 90% drop in the value of the Boohoo’s share price over the period.
He said: “Over the last five years I have been proud to lead the group and I believe there is huge potential in this business and I will continue to work with the Board to drive value for all shareholders whilst a successor is found.”
The Manchester-based company today reported a 7% drop in gross merchandise value, a measure of the value of items sold to £1.2bn for the six months to the end of August, after a modest contraction in UK sales was offset by an 18% fall in the US and a 21% fall elsewhere.
It comes as Boohoo’s turnover was eclipsed by Chinese e-commerce firm Shein, whose revenues surged in the UK in 2023 as the Chinese e-commerce giant prepares for a London IPO.
The company posted turnover of £1.6bn for the year, a jump of around 40% compared to the previous 16-month reporting period of September 2021 to December 2022, or a near doubling when adjusting for the length of reporting periods. Profits during the year more than doubled to top £24m.
The sales figures propel Shein to among the biggest e-commerce players in the UK, positioning the firm for bumper growth and raising hopes that it could fetch a huge eleven-figure valuation if it proceeds with plans to list on the London Stock Exchange.
Boohoo today said it had secured a new £222m debt facility, comprising a £125m revolving credit facility that runs to October 2026 and a £97m term loan that is repayable by August 2025. The company said the agreed interest rate of SONIA+4%, a rate of around 9% as of Friday, would represent an interest saving compared to the rates agreed under previous debt facilities.
Boohoo also said it “strongly believes there is potential to unlock shareholder value and is exploring options to deliver on this”. It did not clarify on the options under consideration, which could include the disposal of some of its brand portfolio, an overseas listing of the business or a delisting in favour of a private equity takeover.
Boohoo’s stock has fallen some 88% over the past five years to give it a market cap of only £400m, amid a difficult trading period post-Covid as well as questions over its business practices.
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