// Asos warns over how the rest of the Covid-19 pandemic will play out as it said it expects volatility in the months ahead
// Profits are being squeezed in part due to increased freight costs and global supply chain disruption
// Sales in the four months to June 30 jumped 31%to £1.29bn, driven by a 60% rise in UK sales to £526.4m
Asos has voiced caution over how the rest of the Covid-19 pandemic will play out as it said it expects volatility in the months ahead.
The online fashion retailer also highlighted that profits are being squeezed in part due to increased freight costs and global supply chain disruption.
However, bosses remain optimistic for the future, highlighting the ever-growing demand for online clothes and a boom in sales during the four months to June 30 – despite high streets reopening as lockdown restrictions eased.
READ MORE:
- Asos launches Nordstrom joint venture to sell Topshop clothes in US stores
- Topshop administrators pay Lady Tina Green £50m
- Asos to make redundancies at Topshop
Customers have also taken advantage of the recent lockdown easing, with more dresses and “occasion wear” rising in popularity.
“Trading in the last three weeks of the period was more muted, as continued Covid uncertainty and inclement weather, particularly in the UK, impacted market demand,” the online retail giant said in an update to the stock market.
“We anticipate a measure of volatility to continue in the near term, given the rapidly evolving Covid situation worldwide.”
It added that there was a “strong performance in the UK, with increased promotional activity to capture the available demand for our compelling product offer, despite the reopening of physical stores early in the period”.
“The final weeks of June saw a softening, due to the impact on consumer demand of continuing Covid uncertainty and unseasonal weather,” Asos said.
Sales in the four months to June 30 jumped 31 per cent to £1.29 billion, driven by a 60 per cent rise in UK sales to £526.4 million – the strongest growth of any of its markets.
The US saw growth of 31 per cent to £144.8 million – although this was helped by currency fluctuations in Asos’s favour – while the EU was slower with 20 per cent growth to £388.3 million.
“Asos has delivered another strong performance against a backdrop of continued social restrictions and global supply chain pressures,” chief executive Nick Beighton said.
“Although mindful of the continued impacts of the pandemic on our customers in the short term, we believe that the structure of the global ecommerce fashion market has changed forever, which will drive an increase in online fashion sales over the long term.”
with PA Wires
Click here to sign up to Retail Gazette‘s free daily email newsletter
