Boohoo warns higher return rates to impact FY22 profits
In a recent trading update for the three months to 30 November 2021, the group said it now expects net sales growth for the full-year to be between 12% and 14%
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Boohoo has warned that “significantly” higher return rates will impact profits for the full-year ending 28 February 2022 making it “lower than previously guided”.
In a recent trading update for the three months to 30 November 2021, the group said it now expects net sales growth for the full-year to be between 12% and 14%, compared with a previous guidance of 20% to 25% growth.
Meanwhile, adjusted EBITDA margin for the year is expected to fall between 6% to 7%, compared with previous guidance of 9% to 9.5% (£117m to £139m).
The group also expects to incur “cash exceptional items” for the year of around £33m, compared with £22m previously guided, and was primarily due to the new warehouse and brand restructuring related costs.
John Lyttle, group CEO, said: “In international markets, our proposition continues to be significantly impacted by ongoing service disruption due to the pandemic, which, in addition to increased recent consumer uncertainty, has weighed on our performance.
“The current headwinds are short term and we expect them to soften when pandemic related disruption begins to ease.”
He added: “Our focus is now on improving the international proposition through continued investment in our global distribution network, capable of delivering in excess of £5bn of net sales, to support future growth.”
