Shares of Manchester-based online fashion giant Boohoo fell about 7% after it published a trading statement for the four months to December 31, 2022, showing group revenue fell 11% to £637.7 million.

In its guidance and outlook, Boohoo said: “For the year ending 28 February 2023, adjusted EBITDA is expected to be in line with market expectations.

“Revenues are expected to decline approximately 12% over the financial year, with an adjusted EBITDA margin of approximately 3.5%.

“With recent positive signs in global supply chains, we expect to see some easing of disruption along with some relief to freight rates.

“Combined with the actions being undertaken on costs across the group, it is expected that overall cost growth begins to moderate as the year progresses along with an improved cost inflation outlook exiting the year ahead.

“The group’s focus continues to be on optimising its operations and investing selectively in key strategic projects that best position it to rebound strongly as conditions normalise.”

Boohoo CEO John Lyttle said: “Performance in the period is in line with expectations and reflects the normalisation of the channel shift online over the last twelve months, but demonstrates the significant market share gains the group has made over the last three years.

“Looking ahead, whilst the demand outlook is uncertain due to macro-economic factors, cost inflation is expected to begin to moderate in the second half of the year.

“We have reduced inventory by 27% year on year and with this focus on careful inventory management, strong cost control and cash management, we will continue to drive operational and cost efficiency across the business.

“The group has continued to invest in key strategic priorities that will enable future growth, and the progress made gives us confidence that as macro-economic headwinds ease it will be well-positioned to rebound strongly.”