How online fashion firm Boohoo has failed to keep up with lockdown-boosted trading

Revenues fell by 8 per cent to £445.7m over the three months to May 31, compared with the same period last year.

The retailer said UK sales nudged 1 per cent lower but it was particularly impacted by heavier declines elsewhere in Europe and in the US.

Nevertheless, Boohoo said it was optimistic as its UK sales improved month on month over the quarter and returned to net sales growth in May.

John Lyttle, CEO of Boohoo, said: "I am pleased with the progress we are making towards our strategic priorities, which is already having a meaningful impact operationally within the business.

"We have seen promising signs from the group's sales performance in the UK, which has improved month on month in the period and we are looking ahead towards our key summer trading season as holidays ramp up and customers look to the latest fashion from across our brands.

"Looking forward, we will continue to focus on optimising both our financial and operational performance to ensure the business is well placed to take advantage of future growth opportunities."

Julie Palmer, partner at professional services firm Begbies Traynor, said: “It has been an undeniably rough ride for the fast fashion retailer over the past few months with the shares falling some 80 per cent and short-sellers circling it.”

She added that it was “clear the squeeze to consumer spending, higher returns rates and enduring supply chain issues are still leaving their mark on the business”.

Ms Palmer said: “Boohoo will be hoping that its younger demographic of customer, those living in the family home, may be partly insulated from the rampant inflation in the economy and there is some evidence that summer wardrobes are starting to be rebuilt.

“But consumers can be fickle and the decision by Love Island to ditch fast fashion in favour of pre-loved items may make purchasing trendy suits and party dresses from boohoo less palatable than it was before.”