Online fashion company Boohoo has warned of sales and profits after being hit by a supply chain disruption, rising costs and customers returning more clothes.

The group said it expects full-year net sales to increase between 12% and 14%, from 20% to 25% previously reported.

Underlying earnings are expected to be between £ 117 million and £ 139million for the year ended February 28.

Boohoo said he expected a profit impact of around £ 20million due to higher freight costs to the UK, while European and overseas trade is hampered by the consumer uncertainty and delivery delays.

The group added that sales continued to decline as the percentage of returned clothing returned to pre-pandemic levels.

The company saw its sales increase 32% in the UK in the three months to November 30, but plummet in its international operations – down 12% in Europe, 14% in the US and 21% in the rest of the world.

John Lyttle, Group Managing Director, said: “In international markets, our proposition continues to be significantly affected by ongoing service disruptions due to the pandemic which, in addition to the recent increase in uncertainty of consumers, weighed on our performance.

“The current headwinds are short-term and we expect them to ease as the disturbances from the pandemic begin to ease. “

The group said it had to deliver all international sales through its UK distribution network due to shipping and air freight disruptions, resulting in long delivery delays to customers.

This means that the expected recovery in the United States has not happened, while trade in Europe has stumbled from a rebound in September, amid consumer concerns.

Transport costs also skyrocketed during the year, to around £ 20million in the UK and £ 45million outside the UK.

He plans to turn around his international business by investing in his global distribution network, which he says is capable of generating more than £ 5 billion in net sales.