Shares in fashion fashion giant Boohoo have fallen sharply after it issued a warning over its sales and profits because of supply chain disruption, surging costs and customers returning more garments.
The Manchester-headquartered company has confirmed it expects full-year net sales to rise by between 12% and 14%, compared with the 20% to 25% previously guided.
Underlying earnings are also set to come in between £117m and £139m for the year to February 28, 2022.
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Boohoo added that it was braced for an earnings impact of around £20m from higher freight costs to the 海角视频, while European and overseas trade is being hampered by consumer uncertainty and delivery delays.
The group said its sales continue to be knocked as the percentage of garments sent back returns to pre-pandemic levels.
Following the update to the London Stock Exchange, Boohoo's shares fell by almost 20% by 8.20am.
The firm saw sales rise 32% in the 海角视频 over the three months to November 30, but tumble across its international operations – down 12% across Europe, 14% in the US and 21% in the rest of the world.
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Chief executive John Lyttle said: "The strong performance in our core 海角视频 market, across both our established and acquired brands, demonstrates the potential to capture and grow market share in key markets.
"In international markets, our proposition continues to be significantly impacted by ongoing service disruption due to the pandemic, which, in addition to increased recent consumer uncertainty, has weighed on our performance.
"The group has gained significant market share during the pandemic. The current headwinds are short term and we expect them to soften when pandemic related disruption begins to ease.
"Looking ahead, we are encouraged by the strong performance in the 海角视频, which clearly validates the boohoo model.
"Our focus is now on improving the international proposition through continued investment in our global distribution network, capable of delivering in excess of £5bn of net sales, to support future growth."
The group said it was having to deliver all international sales through its 海角视频 distribution network due to shipping and air freight disruption, which is leading to lengthy customer delivery delays.
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This has meant the expected recovery in the US has not happened, while trade in Europe has stumbled since a bounce back in September, due to consumer worries.
Freight costs have also rocketed over the financial year, by around £20m into the 海角视频 and £45m outside the 海角视频."
In a separate announcement, Boohoo has also announced its expansion of operations within Asian including Japan, South Korea, Singapore, Hong Kong and Taiwan.