Fast fashion firm Boohoo is planning to make major cost cuts after it slashed its sales forecast. The retailer - whose brands include PrettyLittleThing - warned that sales could fall by up to 17% this year. Boohoo is facing tough competition from rivals such as Shein, while financially-stretched shoppers are also reining in spending. It said that it had identified £125m of cost savings it will make to try to get the business back on track. The online retailer has been making huge efforts to boost profits in recent months, starting to charge for returns and sourcing goods from Europe rather than from Asia. However, its half-year results showed pre-tax losses at the group widened to £26.4m, compared with £15.4m a year ago. Boohoo had made "substantial progress" on big targets, he added, including the launch of a US distribution centre and earmarking £125m in annual cost cuts to be made throughout its supply chains. It said it would focus on "more profitable" sales within its labels, after downgrading forecasts which previously suggested sales would remain flat or fall by up to 5%.
