The online retailer sees sales growth slowing further in its current financial year as COVID-linked shipping woes persist and consumer budgets are squeezed by the cost of living crisis.
Boohoo sees sales growth slowing over the course of the current year as household budgets come under strainBoohoo, the online fashion retailer, has reported a collapse in profits as the business was hit by higher product returns and a surge in costs.
The company, which targets 16-40-year old's, enjoyed a 14% rise in revenue to almost £2bn in the year to February. But Boohoo said its bottom line was savaged by significant freight and logistics cost inflation and warned that the pandemic-related factors will continue to impact it this year.The decline also reflected a big increase in investment, including the opening of two new UK distribution centres, the relaunch of Debenhams as an online-only retailer and the Integration and relaunch of the newly acquired Dorothy Perkins, Wallis and Burton brands.
John Lyttle, the chief executive, said he was targeting a figure of 60% from current levels around 40% to ease exposure to elevated inbound air and sea freight costs from Asia - particularly China, which is continuing to face significant COVID disruption.
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