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Boohoo warned on profit as higher return rates, supply chain disruption and inflation muddied the outlook for online fashion retailer.
For the financial year ending 28 February, the company cut its expectations net sales growth to a range of 12% 14% from 20% and 25% previously.
Adjusted earnings before interest, taxes, depreciation, and amortisation, or EBITDA guidance was cut to range 6% to 7% from 9% to 9.5% previously.
'This is as a consequence of significantly higher returns rates impacting net sales growth and costs, with continued disruption to our international delivery proposition impacting international demand, and significant ongoing pandemic-related cost inflation,' the company said.
The profit warning was provided alongside a trading update for Q3, which showed sales increased but margins fell amid higher return rates and rising costs.
Return rates jumped 12.5% from a year earlier, and gross margin fell 100 basis points in Q3 year-on-year.