// Boohoo records the first UK sales decline in its history as shoppers buy less online and return more goods
// Boohoo blamed the fall on tough comparisons with last year when people were spending more online during Covid-19 lockdowns
Boohoo has posted its first UK sales drop as the fast fashion retailer struggles with supply chain disruption and shifting post-pandemic consumer trends.
In a trading update on Thursday, the Manchester-based business posted a one per cent fall in UK revenue while overall sales plunged eight per cent in the three months to 31 May 2022.
Boohoo said it had been anticipating a slowdown of sales as consumers’ online shopping in lockdown fuelled previously strong comparatives.
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It said UK sales did improve month-on-month during the period and returned to net growth in May and it expected further improvement during the rest of the year.
The retailer stuck to its previously lowered guidance for the full year of “low single digit” revenue growth, which would be the smallest increase since its IPO in 2014.
It has also predicted that profitability will be much lower than its historical average.
It comes as rival Asos has also warned that it expects its profit to be hit this year with more shoppers returning clothes, against a backdrop of sky-high inflation and the current cost-of-living crisis.
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