Manchester based online fashion retailer Boohoo has warned on annual profit for the second time in four months, blaming higher product return rates, disruption to international deliveries and COVID-19-related cost inflation.
It said the new Omicron coronavirus variant could pose further demand uncertainty and elevated returns rates particularly in January and February.
“This is due to significantly higher returns rates impacting net sales growth and costs, with continued extended delivery times impacting international demand, consequently driving lower returns on marketing expenditure, and significant ongoing pandemic-related inbound freight cost inflation,” said the Company as predicted reduced sales growth and profits
