Boohoo profits down by 64% due to costs increase

UK fashion giant Boohoo Group saw shares fall by 15.1% as it reported profits falling 64% to £24.6 million in the six months to August.

This was in part due to increased costs of shipping their clothes from Asia totalling £26 million. To maintain warehouse workforce numbers Boohoo has also raised the pay of its workers, further impacting its bottom line.

At the same time, there has been a bounce back in the numbers of returned items to pre-pandemic levels. This is because customers are buying more fitted clothes such as jeans.

The news comes as the fashion group reported that it had doubled market share in some markets and is set to bounce back from the pandemic in a far stronger position than two years.

Chief executive John Lyttle said: ‘We are delighted to have doubled our market share in key markets such as the UK and US, and are excited about the global potential for all of our brands.’

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