Boohoo hit by higher clothes returns than pre-Covid

Boohoo's profits have taken a hit after online shoppers returned clothes at a faster rate than before the pandemic.

The fast-fashion brand's profits before tax slumped by 94% to £7.8m in the year to the end of February.

Its sales are still well above pre-Covid levels after high streets closed and shoppers turned to ordering online.

But since restrictions were lifted customers have flocked back to physical stores and Boohoo says its online shoppers are sending more items back.

Overall, Boohoo's sales rose 14% on the year to £2 billion. But it warned that challenges caused by the pandemic, including rising shipping costs and overseas delivery delays, would continue this year.

Boohoo's brands include BoohooMAN, Karen Millen, Nasty Gal, PrettyLittleThing, Coast, Misspap, Oasis, Warehouse, Burton, Wallis, Dorothy Perkins and Debenhams.