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Notice for 'online': Boohoo collapses by returns and transport costs

The British sales firm online Boohhoo collapses up to 20% in the London Stock Exchange, to the lowest level in five years, after warning about the impact on benefits of an increase in returns and costs ofTransport in the United States.The firm now expects a profit margin between 6% and 7%, compared to an earlier range from 9% to 9.5%.

Boohoo, which also has the Prettylittlething brand, also revealed a strong deceleration of demand with a growth of net sales in the range of 12% to 14%, compared to an earlier forecast from 20% to 25%.The reduction of perspectives is a blow to Boohoo, which last year suffered a notorious scandal due to working conditions in its supply chain, has blamed the fall of results to the increase in returns in its main market in the United Kingdom.

Internet trade companies, such as Boohoo Asos's rival, have benefited from restrictions;The purchase of informal clothing in the face of the slightest mobility produces less returns.As normal purchase patterns have resumed, returns have increased again.

Aviso para el 'online': Boohoo se desploma por devoluciones y costes de transporte

Boohoo is known for its garments to leave and party, which generally suffer a higher return rate.Their buyers, mostly young people, can buy several sets to try themselves before an event and then only stay with the one they decide to use, returning the rest.

Boohoo's growing business in the United States has also seen the supply chain and high transport costs.The group the group had already warned in September, when it reduced its sales and profitability, which was being affected by these expenses.Supply problems have caused the deadlines to customers in the US to rise up to ten days, which has made a demand in demand, since buyers opt for merchants with a higher delivery speed.

The company thus sends an alarm signal on the possible impact of the interruptions of the global supply chain and the increase in costs on the sector.The company calculates additional charges for transport of 77 million euros (53 for shipments and 24 for supplies).It also provides an extra impact of 39 million euros for storage costs and "new brands restructuring."