Online giant looks forward as it seeks to leave profit warning problems behind

Online fashion retailer Boohoo has sought to reassure the markets and recover from a difficult autumn with a confident trading update.

The group’s share price has been declining steadily for nearly a year, losing 80% of its value as it hit a six-year low.

Last night’s closing share price valued the group at just under £1bn, a far cry from the £5bn-plus levels seen during the first lockdown in 2020.

However Boohoo expects its adjusted earnings for the financial year which has just ended to be £125m, in line with the lower guidance issued in December.

International sales have returned to growth despite longer customer delivery times as a result of pandemic-related supply chain pressures.

John Lyttle, group chief executive, said: “The group has delivered strong growth over the last two years, which has translated into significant market share gains.

“We are confident that pandemic-related headwinds are short-term in their nature, and our focus is to ensure the business is well positioned for growth as these headwinds ease.”

Net sales were up 7% in the fourth quarter, slower than the full-year growth of 14%.

Higher returns continue to impact Boohoo, along with other online retailers – a trend it expects to continue in the coming months.

Investors responded positively to the update, with Boohoo’s shares rising 10% in early trading.