Asos profits plunge following period of ‘significant volatility and disruption’

Adjusted pre-tax profits were £14.8m in the six months to February 2022. This marked an 87% decrease from the same period in 2021.

Group sales rose 4% on a constant currency basis to reach £2bn and UK revenues also increased 8% in the period.

Topshop brands recorded sales growth of 193% year on year, with particular demand evident in the UK, US and Germany.

Active customers also rose to 26.7 million, up 300,000 over six months. Asos reported that the slowdown in customer growth was attributed to a sharp rise in the number of those shopping online when stores were shut during periods of lockdown.

Reduced stock availability due to ongoing supply chain challenges impacted growth as Asos noted a “more challenging external environment”. Asos reported that the stock position had now improved as it looks ahead to the second half of the year.

Asos has also implemented “low- to mid-single-digit percentage price increases” across both its own brands and partner brands in the first half of the year to mitigate the risk of rising inflation.

Chief operating and financial officer Mat Dunn said: “Asos has delivered an encouraging trading performance against the continuing backdrop of significant volatility and disruption. The team has acted with determination and pace, and is making good early progress on the strategic plan for the next phase of growth, as set out at our CMD last year.”

“While much remains to be done, we have a clear plan for each of the three key pillars – our platform, consumer offer and international expansion – and are already seeing positive signs of progress across the business. We’re confident of the benefits these efforts will create and our continued ability to deliver.

“We’ve entered the second half of the year well placed, and believe that our stock position, with increased product availability and newness, will stand us in good stead.

“We remain mindful of the potential impact on demand from the growing pressures on consumer spend and will continue to be responsive to any changes in market conditions as we progress the work started in the first half to deliver on our ambitions.”