Fast fashion giant has revealed that profits plunged as return rates have soared and the impact of the pandemic has hit.
The group posted profits of just £7.8 million for the 12 months to the end of February 2022 down from £124.7 million for the previous year. Despite the fall in profits, Boohoo’s revenue increased £1.745 billion to £1.982 billion, BusinessLive reports.
Bosses said that the group had faced a rise in distribution costs while customer demand fell, in a statement issued to the London Stock Exchange. And high costs are expected to continue throughout the year.
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While a series of cost-cutting initiatives are said to be in place, the high costs could mean the price of products will rise. The company said it would be committing to “mitigate where possible before passing prices on to consumers”.
Chief executive John Lyttle said: “Over the past two years, we have significantly increased market share in our core geographies of the UK and the US, and we have grown active customer numbers by 43% across the group to 20 million.
“Our focus over the past two years has been on investing to build a strong platform, with the right infrastructure, supported by increased capacity to better serve our customers.
(Image: Leicester Mercury / Chris Gordon)
“In the…
