BOOHOO's sorry state of sales was enough to leave investors potentially "crying into their cornflakes" yesterday morning, according to Hargreaves Lansdown's Derren Nathan.

Once a darling of the apparel world, Boohoo has faced a turbulent year, with its market value sinking 84 per cent in the past year.

It is not the first time the retailer has admitted customers returning parcels have hit its bottom line. In yesterday's results, the Londonlisted firm said its sales had taken a beating worth 10 per cent after returns were factored in.

It recently ushered in a £1.99 returns policy, alongside its pricer rival Zara.

"It remains to be seen how long weak demand, inflationary pressures, and supply-chain bottle necks will continue for," Nathan added.

However, analysts pointed to a sign of light at the end of the tunnel for the retailer, which has recently invested in automating its Sheffield distributions centre. This could help margins recover and boost its fulfilment capabilities.

Even so, there is no denying that consumer appetite for fast fashion has hit the rocks.

EMILY HAWKINS

(c) 2022 City A.M., source Newspaper