Manchester based online fashion retailer Boohoo has warned that freight inflation in its supply chain and higher wages for its distribution centre workers would impact full year profit margins.
Boohoo, which sells clothing, shoes, accessories and beauty products aimed at 16 to 40-year olds, said full year 2021-22 margins were now expected to be 9% to 9.5% versus its previous guidance of 9.5% to 10%.
First-half sales rose 20% to £975.9 million and are forecast to rise 20% to 25% over the full year, implying growth of 20% to 30% in the second half.
Boohoo said consumer demand had improved through both August and September.
The group also said it would open a new distribution centre in North America in 2023.
The retailer made adjusted earnings before interest, tax, depreciation and amortisation of £85.1 million in the six months to August 31, down 5% from a year earlier, reflecting a rise of £26 million in freight and logistics.
Group CEO John Lyttle said:
‘Entering the second half of the year, the group is well-positioned to accelerate its growth and our confidence in the group’s medium term targets remain unchanged.
‘We will continue to invest across our platform, people and technology as we look to further cement our position as a leader in global fashion ecommerce.’
