Shares of Manchester-based online fashion giant Boohoo fell as much as 15% on Thursday after it published a trading statement for the three months to May 31, 2022, showing its revenue fell 8% to £445.7 million amid “high returns rates.”

Boohoo shares are down about 83% for the past 12 months.

Boohoo said net sales were impacted “by the ongoing normalisation of returns due to product mix change.”

Boohoo said its outlook for the year ending February 28, 2023, remains unchanged.

“Revenue growth for FY23 is expected be low-single digits, with a return to growth in Q2 and growth rates improving in the second half of the year as the group annualises high returns rates and normalising consumer demand,” said Boohoo.

Boohoo’s brands include Boohoo, PrettyLittleThing, Nasty Gal, MissPap, Karen Millen, Coast, Oasis, Warehouse, Wallis, Dorothy Perkins, Debenhams and Burton.

CEO John Lyttle 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.”