Asos reports 10% sales rise during lockdown
Online fashion retailer Asos has reported a 10% increase in group sales to £1.01bn amid the Covid-19 pandemic and has said it is on “track” to deliver “strong profit growth” across its financial year.
In the four months to 30 June, sales growth was driven by its international retail sales, which increased by 17% to £654.1m compared with £559.9m in the same period last year.
EU retail sales increased by 22% to £326m compared to £269m in 2019, whereas UK retail sales decreased by 1% to £329.2m compared with £334.1m in the same period last year,
Asos also reported a 3% increase in US retail sales to £124.9m compared with £121m in 2019.
The online retailer said its performance was supported by good new customer acquisition, strong growth in ‘lockdown’ product categories (casualwear, activewear, face and body), an overall improvement in underlying demand and beneficial returns behaviours showing more deliberate purchasing.
It also pledged to replay previously claimed furlough support for the government.
Nick Beighton, Asos chief executive, said: “This has been a tough time for all businesses, but we have remained focused on doing the right thing for our people and our customers and making sure that we emerge from the current crisis as a stronger and better organisation.
“I am particularly proud of the resilience, flexibility and creativity the Asos team and our business partners have shown. Our performance in P3 shows that we are delivering against this aim despite the tough economic and social backdrop.”
He added: “We have learnt a lot and adapted quickly, and ASOS finishes the period with improved underlying profitability. While we remain cautious about the consumer impact of Covid-19 looking forward, we are on track to deliver strong year-on-year profit growth and to return to positive free cash flow for the full-year.”
