The popular fast-fashion retailer say the rising cost of living is affecting their sales.
Photo by freestocks.org from Pexels.Boohoo said sales have tumbled by a tenth over the past six months and expect them to keep falling because of the cost of living crisis.
The fast-fashion retailer told shareholders it's expecting profit margins to be lower than predicted.
The firm that also owns PrettyLittleThing and Karen Millen have recorded a pre-tax loss of £15.2 million up to the end of August.
That's compared to a £24.6 million profit over the same period last year.
The group's chief executive, John Lyttle, blamed the decline on a “more challenging economic backdrop weighing on consumer demand."
Boohoo said this decline was caused by “significantly” higher return rates and a “softening” in Irish and UK customer demand.
A 17% slump in international revenues was also a contributing factor to the fall.
Mr Lyttle told investors he remains confident in the longer-term trajectory of the brand.
Boohoo issues profit and sales warning as market value slumps 87% in year https://t.co/BPBcT1Ild7
— The Guardian (@guardian) September 28, 2022
