High returns impact Boohoo sales

Boohoo expects lower sales growth and profits for the year than originally anticipated due to “significantly” higher returns rates and continued disruption to its international delivery network.

In its latest financial statement, the online fashion retailer said that it now predicts net sales growth to be 12 to 14 per cent compared to previous guidance of 20 to 25 per cent for the year ended 28 February 2022.

It reported gross sales up 28 per cent across the three months to 30 November, while net sales increased by 10 per cent in comparison to the previous year.

In the UK, the strongest performer for the business, sales were up 32 per cent to £320 million in comparison to the same period of the previous year.

"The strong performance in our core UK market, across both our established and acquired brands, demonstrates the potential to capture and grow market share in key markets,” said John Lyttle, group chief executive. “In international markets, our proposition continues to be significantly impacted by ongoing service disruption due to the pandemic, which, in addition to increased recent consumer uncertainty, has weighed on our performance.”

Lyttle added: “The Group has gained significant market share during the pandemic. The current headwinds are short term and we expect them to soften when pandemic related disruption begins to ease. Looking ahead, we are encouraged by the strong performance in the UK, which clearly validates the Boohoo model. Our focus is now on improving the international proposition through continued investment in our global distribution network, capable of delivering in excess of £5 billion of net sales, to support future growth."

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