P4 trading was no worse than feared… with Group P4 sales at +7% (P3: +10% YoY, P2: +9%, P1: +32%), leading to a full year sales growth outcome of +14% – in line with recently downgraded guidance at P3. Pleasingly, the “strong” UK sales performance points to the boohoo brands still resonating with their core customer. However, P4 international sales remain soft, albeit with growth coming from the ROW region for the first time this year. With full year EBITDA now guided to £125m this year, this implies EBITDA margins fell to 3.9% in H2 (H1: FY22: 8.7%, H2 FY21: 9%) with profitability impacted by higher return rates and ongoing pandemic-related freight costs. …yet we do still have concerns: until localised warehousing is installed in the US and ROE regions, sales growth is likely to remain subdued with lead times remaining uncompetitive versus peers. Worse still, with localised warehousing unlikely to materialise until 2023, boohoo risks losing International customers for good – especially in light of growing competition from up and coming brands like Shein. We are also increasingly concerned that elevated marketing costs are simply failing to ignite demand and that return on marketing spend has fallen sharply this year. In the meantime, we are not convinced boohoo’s acquisition of Debenhams marketplace is able to compete with established platforms such as ASOS and Next. If this is the case, growth is becoming overly reliant on the maturing UK business as well as a US business that is not without problems. Forecasts: We publish new forecasts that are closer in line with consensus, which assume half the elevated in/outbound freight costs of £65m this year fall back by FY24E. There are risks here given the recent sharp rise in energy and commodity prices. While we assume top line growth re-accelerates to +18% in FY24E, this may prove optimistic given recent soft trading and could require elevated marketing investment where returns have been falling of late.