Boohoo cancels orders amid slowing sales and rising costs
Fast fashion retailer Boohoo is cancelling and postponing orders from suppliers amid slowing sales for fast fashion and rising costs.
The Sunday Times reported that clothing suppliers in Leicester, who are facing pressure from soaring energy bills, feel that they are taking the strain for the cancellations.
A supplier in Leicester told The Sunday Times: "Boohoo has cancelled a load of orders. We are just here to do the fast stuff and when they don’t need it, they just stop it in its tracks."
Manchester-based Boohoo, whose Co-Founder Mahmud Kamani remains the largest single shareholder, has been hit by a surge in shipping costs, an increase in customer returns and investor worries amid a slowing economy.
A Boohoo spokesperson told the newspaper: "As is the case across a retail sector currently navigating uncertain demand, we are constantly reviewing our requirements."
Boohoo Group released its financial results for the first quarter ending 31 May 2022, revealing an 8% decrease in revenue to £445.7 million. UK revenue decreased by 1% to £272.1 million, but was up 94% against FY20.
Last month, the Group announced its investment into Revolution Beauty Group, amounting to a direct interest of 7.1% of Revolution's issued share capital.
Boohoo is set to release its interim results on Wednesday.