// Asos updates sales and profit forecast “significantly ahead of market expectations”
// Asos says profit will reach between £130m-£150m, up from £33.1m the year before
// It also say revenue would likely grow between 17%-19% during the year
Asos has announced that it expects sales and profits this year to be “significantly ahead of market expectations”.
In a pre-close statement, the online fashion retailer attributed its updated forecast to shoppers who have continued to shop with them even after lockdown ended.
Asos said that profit before tax would reach between £130 million and £150 million, up from £33.1 million the year before.
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It also said revenue would likely grow between 17 per cent and 19 per cent during the year.
The online retail giant has benefitted from a “sufficient and sustained” reduction in returns rates since April, as shoppers were less likely to send items back during the lockdown.
Asos had expected this to return closer to normal levels after lockdown, but this morning it was “evident that returns are not increasing at the rate we originally anticipated”.
In its most recent trading update published last month, Asos revealed that group sales had grown 10 per cent to £1 billion in the four months to June 30.
The number of active customers in the period also increased by 16 per cent year-on-year to 23 million.
Despite its improved forecast, Asos warned that the outlook was still uncertain, and that it was unclear how long current favourable shopping habits would persist.