Manchester-based fashion giant Boohoo lost more than £15m during the first half of its financial year as cost-of-living pressures continued to bite.
The group, which also includes the PrettyLittleThing and Karen Millen brands, has reported a pre-tax loss of £15.2m for the six months to August 31, 2022, compared to a £24.6m profit during the same period in 2021.
In a statement to the London Stock Exchange, Boohoo said higher returns had also impacted its results. Boohoo also reported a 10% drop in its revenue to £882.4m.
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Boohoo stopped its popular long-running free returns policy with the introduction of a £1.99 charge in July.
Chief executive John Lyttle said: "Performance in the first half was impacted by a more challenging economic backdrop weighing on consumer demand.
"Over the last three years the group has seen significant gains in market share achieved across our brand portfolio, particularly in the UK where our price, product and proposition resonate strongly with customers.
"We have a clear plan in place to improve future profitability and financial performance through self-help via the delivery of key projects, which will stand us in good stead as macro-economic headwinds ease.
"We remain confident in the long-term outlook, as we continue to offer customers unrivalled choice, inclusive ranges and great value pricing, giving them even more reasons to shop with us."
On its outlook, Boohoo said that as a result of the impact that the macro-economic and consumer backdrop has had on its revenues in the first half, its "expectation is for a similar rate of revenue declines to persist over the remainder of the financial year if these conditions continue".
It added that increases in inflation-driven costs as well as the resultant operational deleverage from lower sales than previously anticipated mean that adjusted EBITDA margins are likely to be between 3% and 5%, compared to the previously guided range of 4% and 7%.
Boohoo said: "It is the board's view that by focusing near term on optimising its operations, the group will be well-positioned to improve future profitability and financial performance through self-help via delivery of key projects and cost efficiencies and through easing of macro-economic headwinds facing both consumers and businesses."
Boohoo's brands also include Nasty Gal, Warehouse, Oasis, Debenhams, Dorothy Perkins, Wallis and Burton.
The results come after the group recently announced Kourtney Kardashian Barker as its newest ambassador with a focus on sustainability.
In August the Competition and Markets Authority said that the eco-friendly and sustainability claims made by ASOS, Boohoo and George at Asda were to be investigated.
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