Asos Sees Profit at Top End of Forecasts as Sales Rebound
(Bloomberg) -- Asos Plc expects profit to hit the top end of market expectations this year after sales in recent months rose 10%, rebounding as pandemic lockdowns eased across Europe.
- The online apparel retailer said cost cuts and “rigorous” management helped offset the impact of warehouse capacity constraints and falling demand for party clothes as people stayed at home during lockdown.
- Sales growth in the U.K. fell 1% during the four months to June 30th, which was weaker than at rival Boohoo Group Plc, partly due to social distancing in its warehouses.
- Asos said it was experiencing a “strong recovery” in the European Union and other overseas markets since lockdown measures eased.
- “We have learned a lot and adapted quickly,” said Chief Executive Officer Nick Beighton. Yet the company remains cautious on the outlook for demand due to the pandemic and economic uncertainties.
- Fast-fashion supply chains are in focus following allegations of labor exploitation in factories supplying Boohoo in Leicester, England, though Asos has not been implicated.
- Asos shares rose as much as 6.6% in London trading.
- Read the statement here.
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