Manchester based online fashion retailer Boohoo reported a 28% fall in annual core earnings that reflected significant freight and logistics cost inflation and warned that pandemic-related external factors will continue to impact it this year.
The group said on Wednesday it made adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £125 million pounds in the year to Feb. 28 down from £173.6 million in 2020-21.
Boohoo said that it has started a cost-cutting program and is operating with lower levels of inventory. To help tackle the problem of freight costs and delays, the company is looking to source more closely to the U.K.
The retailer said that sales growth should pick up in the second half of the year with return rates easing and consumer demand normalizing and added that it would focus on retaining the market share gains it has made over the course of the last two years..
