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UK: Boohoo CEO to Step Down as Strategic Review Launched

Clouds form behind the London Eye in London, Britain, October 17, 2024. REUTERS/Mina Kim
Clouds form behind the London Eye in London, Britain, October 17, 2024. REUTERS/Mina Kim
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UK: Boohoo CEO to Step Down as Strategic Review Launched

Clouds form behind the London Eye in London, Britain, October 17, 2024. REUTERS/Mina Kim
Clouds form behind the London Eye in London, Britain, October 17, 2024. REUTERS/Mina Kim

British online fashion retailer Boohoo said its CEO would step down as the group announced a review of its strategic options to try to improve performance after sales slumped.

The company, whose brands include boohoo, PrettyLittleThing, Debenhams and Karen Millen, said on Friday that John Lyttle had informed the board of his intention to stand down but would stay on whilst a successor is found.

The company, like UK peer ASOS, was a winner during the pandemic, which drove a boom in online shopping. It has struggled since, hurt by supply chain problems, higher product returns, competition from rivals such as Shein and subdued consumer demand. Boohoo shares are down 22% so far this year.

Boohoo also reported a 7% fall in first half sales by gross merchandise value (GMV) and said it has agreed a new 222 million pounds ($290 million) debt facility.

"The board strongly believes there is potential to unlock shareholder value and is exploring options to deliver on this," it said.

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LVMH Third-Quarter Sales Fall 3% as China Weighs

Logo of Dior brand is seen outside a Dior store in Paris, France, January 27, 2020. (Reuters)
Logo of Dior brand is seen outside a Dior store in Paris, France, January 27, 2020. (Reuters)
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LVMH Third-Quarter Sales Fall 3% as China Weighs

Logo of Dior brand is seen outside a Dior store in Paris, France, January 27, 2020. (Reuters)
Logo of Dior brand is seen outside a Dior store in Paris, France, January 27, 2020. (Reuters)

French luxury giant LVMH reported a 3% fall in third-quarter sales on Tuesday, its first decline in quarterly sales since the pandemic, as rising prices and economic uncertainty held back shoppers.

Revenue for the world's biggest luxury group was 19.08 billion euros ($20.8 billion) for the three months ending in September, a 3% fall on an organic basis, stripping out the effect of currencies, acquisitions and divestitures.

The figure missed a consensus estimate of 2% organic growth, according to Barclays.

The numbers will offer little reassurance to jittery investors who already had low expectations for the quarter.

The fashion and leather goods division, home to Louis Vuitton and Dior labels, reported a decline of 5%, well below consensus expectations for 4% growth, and the first decline for the business since 2020 during the height of the pandemic.

Fashion and leather goods comprise almost half of LVMH revenue and nearly three-quarters of its recurring profit.

Investors have grown nervous about the luxury goods sector since a post-pandemic spending spree lost momentum last year, with Chinese appetite for high end fashion a major source of concern. The country's property crisis has weighed on shoppers' confidence, and hopes that government stimulus measures could quickly reignite enthusiasm for high-end merchandise have yet to be fulfilled.

UBS has predicted that the third quarter will be the worst for the sector in four years, with a 1% decline in organic sales year-on-year.