The fashion house, backed by celebrities such as Megan Fox and Dele Alli, reported a loss of £9.1 million as group income fell.
Boohoo, the online fashion retailer known for its celebrity endorsements, fell 17% in the six months to August.
The company’s UK revenue is down 19%, shares are down 10% year-on-year and sales are expected to fall by 12-17%.
Boohoo reported an adjusted pre-tax loss of £9.1m for the last six months. This contrasts with profits of £6.2m in the same period last year.
Founded by former market trader Mahmoud Kamani in 2006, the fashion startup was valued at more than £5 billion at its peak.
Mahmoud’s sons Umar, Adam and Samir are known for their amazing lifestyle, posting photos from Hollywood parties on social media.
The Manchester-based online retailer has been linked to a number of high-profile celebrities over the years, including Khloe Kardasian, Hailey Bieber, Little Mix, Nicole Scherzinger and Paris Hilton, as well as financial success.
Boohoo bought the iconic Debenhams brand for £55 million but crucially failed to sell up the stores, leaving thousands facing an uncertain future.
The company has also acquired well-known brands such as PrettyLittleThing, Nasty Gal, MissPap, Karen Millen and Coast.
In 2017, Boohoo was named as one of several retailers that used suppliers due to poor working conditions.
A Dispatches investigation uncovered poor conditions at clothing factories in Leicester that supplied products to Boohoo and other high-profile retailers.
The reports alleged that the factory underpaid workers and subjected them to unsafe and unreasonable working conditions.
Workers were punished by strikes, which led to dismissal in the third instance.
At the time, Boohoo said all staff, including agency staff, were paid at least the national minimum wage.
The company also stated that the use of strikes does not comply with their own policies.
The investigation, led by Alison Levitt QC, found that monitoring of Boohoo factories was “inadequate” and called the failure to assess the risk to workers during the coronavirus pandemic “inexcusable”.
The dispute is said to have cost the company around £1 billion.
The company recently tried to increase profits by charging customers a return fee.
Industry analysts say Boohoo is struggling to cope with the growth of Chinese company Shein, which has been a rising star in the so-called fast fashion sector in which Boohoo previously thrived.
There is no suggestion that today’s figures are related to the Channel 4 documentary aired in 2017.
Speaking after the latest figures were released this morning, CEO John Little said: “We made significant progress on key projects and initiatives during the first half of the year, including the launch of our US distribution centre.
“We have achieved significant reductions in delivery times and have invested in pricing to strengthen our reputation.
“We have identified more than £125 million in annual cost savings that support our investment programme.
“Our confidence in the group’s medium-term prospects remains unchanged as we deliver on our key priorities where we see a clear path to improved profitability and a return to growth.”