Boohoo names Trainline’s Shaun McCabe a new finance boss as higher return rates and shifting shopper habits eat into UK sales
- McCabe will succeed Catto who will stay on the board as an executive director
- Boohoo recently reported a drop in UK sales amid shifting shopper habits
Boohoo has named Trainline’s chief financial officer Shaun McCabe as its new finance chief.
McCabe will succeed Neil Catto, who will stay on the board as an executive director with responsibility for strategic projects.
Boohoo said McCabe was expected to take up his new role later this year, with Catto remaining as CFO until then.
Board shift: Boohoo has named Trainline’s chief financial officer Shaun McCabe as its new finance chief
McCabe, who has served a a non-exec director at the group since 2020, said he looked forward to helping the management team ‘execute Boohoo’s growth strategy as CFO.’
Outgoing CFO Catto’s tenure has seen Boohoo revenues climb from £20million almost £2billion today.
He said: ‘In this period, the Group has transformed from a small, disruptive UK fashion brand to a stable of international brands with global recognition.’
Mahmud Kamani, Boohoo’s executive chairman, added: ‘Ot has been a great pleasure to work with Shaun over the last two years and we are delighted to have him onboard in his new capacity later this year. His digital and sector experience at Trainline, Asos and Amazon will be key to driving the Group’s next stage of growth.’
Boohoo reported an expected fall in sales in its latest quarter, reflecting a tough comparison with the same period last year when sales were given a pandemic boost.
The group, which sells clothing, shoes, accessories and beauty products aimed at people aged 16 to 40, saw revenue fall 8 per cent to £445.7million in the three months to 31 May.
Higher return levels from customers are continuing to hit its bottom line.
All regions, apart from ‘Rest of World’, saw revenues slide, with the worst performance seen in the US.
For the first time since the company launched, UK sales also slipped, falling 1 per cent, before returning to growth in May. The group has maintained its annual guidance.
Gross margin for the quarter was 52.8 per cent, down 220 basis points.
Amid surging costs and fierce competition, Boohoo expects its underlying cash profit margins to come in at between 4 to 7 per cent for the full year.
Revenue growth for the full 2022-23 year is expected be ‘low-single digits’.
Boohoo shares fell slightly in early morning trading, and were down 0.46 per cent or 0.28p to 60.98p, having fallen over 80 per cent in the past year.