REG - boohoo group plc - Changes to boohoo operations in the US market

BoohooAnnouncement

11/09/2024 07:00

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RNS Number : 6598D  boohoo group plc  11 September 2024

11 September 2024

 

boohoo group plc

("boohoo", the "Company" or the "Group")

Changes to boohoo operations in the US market

 

boohoo group plc (AIM: BOO), a leading online fashion group, announces
changes to its operations in the US market as it seeks to broaden its product
offering for US customers and expand its routes to market. The moves are the
latest in a series of steps as part of the strategy to reposition the group
for sustainable, profitable growth.

Under the changes, boohoo is to cease supplying US customers from its US
distribution centre in Pennsylvania and will now fulfil all US orders from its
state-of-the-art automated UK distribution centre in Sheffield. This move
follows a recent trial of increasing the product range offered to US consumers
by also fulfilling from the UK, which has led to encouraging results. Before
this trial, US consumers were being offered only around 60% of the styles on
sale in the UK.

The Group remains excited about the opportunity in the US and has been
developing wider routes-to-market strategies, the first of which is the recent
launch of Nasty Gal in Nordstrom stores. The Group is also in advanced talks
with major US brands with regard to new routes to market for other brands
within the Group.

The moves will result in a write-down on the Group's balance sheet against the
investments and costs associated with the US operation as well as certain
one-off exceptional cash costs. Importantly, these changes will result in a
significant reduction in ongoing costs over the medium term. Further details
will be outlined in the half year results.

 

 Enquiries:
 boohoo group plc
 Mike Cooper, Head of Investor Relations      investorrelations@boohoo.com (mailto:investorrelations@boohoo.com)

 Zeus Capital - Nominated adviser and broker
 Dan Bate / James Edis                        Tel: +44 (0)161 831 1512
 Benjamin Robertson                           Tel: +44 (0)20 3829 5000

 HSBC - Joint Broker

                                              Tel: +44 (0)20 7991 8888

 Chloe Ponsonby / James Hopton

 Headland  - PR agency
 Susanna Voyle / Will Smith                   Tel: +44 (0)20 3725 7514

 

 

 

 

Notes to Editors:

Boohoo group's US distribution centre is a 1.1m sq ft facility in
Elizabethtown, Pennsylvania, southeast of Harrisburg that started operating in
August 2023.  It is operated by a third party and is a property lease that
boohoo will now sublet. It is anticipated that boohoo operations at the site
will end by 11 November 2024.

 

 

 

About boohoo group plc

 

"Leading the fashion eCommerce market"

 

Founded in Manchester in 2006, boohoo group is a fashion forward, inclusive
and innovative business. The Group's brands are complementary, vibrant and
scalable, delivering inspirational, on-trend fashion to our customers 24/7.
The diversity of our brands, including the group's 5 core brands, boohoo,
boohooMAN, PrettyLittleThing, Karen Millen and Debenhams, enable us to serve a
broad customer base, globally, with a primary focus on the UK and US markets.
Since its acquisition in 2021, Debenhams has been transformed from a retailer
into a digital marketplace with a capital-light, low-risk operating model and
a focus on fashion, beauty as well as home. Boohoo group is concentrated on
driving sustainable, profitable growth with technology and automation
increasing efficiency across the business..

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