Boohoo’s profits have taken a slump after online shoppers returned clothes faster than before the pandemic.
The fast fashion brand’s pre-tax profit plummeted 94% to £7.8m in the year to the end of February.
Sales are still well above pre-Covid levels after high streets closed and shoppers turned to ordering online.
But since restrictions were lifted, customers have returned to physical stores in droves, and Boohoo says its online shoppers are returning more items.
Overall, Boohoo’s revenue grew 14% year over year to £2 billion. However, she warned that the challenges caused by the pandemic, including rising shipping costs and overseas delivery delays, would continue this year.
Boohoo brands include BoohooMAN, Karen Millen, Nasty Gal, PrettyLittleThing, Coast, Misspap, Oasis, Warehouse, Burton, Wallis, Dorothy Perkins and Debenhams.
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