Boohoo issues profit warning as shoppers cut back on clothes

The stock has fallen about 70% this year to around the lowest since 2016.

Shoppers are tightening their purse strings in the UK, Boohoo’s home market, as inflation soars to the highest in four decades.

Boohoo Group cut its profit guidance for the year as soaring energy and food bills stopped consumers from splashing out on clothes and shoes.

The British online fashion retailer now expects an earnings margin of between 3% and 5%, compared with previous guidance of 4% to 7%. Boohoo said Wednesday that revenue dipped 10% in the first half, and is expected to keep falling due to inflation and weaker consumer demand.