Onine fashion giant Asos has reported surging sales and profits after successfully navigating the pandemic so far, but it remained cautious on prospects as its young customers’ lives continue to be disrupted.
Asos’ pre-tax profits rocketed 329% to £142m in the year to August 31, with group revenue up 19% to £3.26bn. The performance reflected operational improvements made following a tough period the previous year as well as strong trading during the Covid outbreak.
UK retail sales advanced 18% year on year and international revenues were ahead by 20%.
Asos said there had been “strong product performance across the year with a dynamic reshaping of offer in the second half to match customer demand in lockdown categories”.
The etailer said it had demonstrated “operational agility and resilience” in its warehousing and supply chain, despite the challenges posed by the pandemic, such as the need for social distancing in fulfilment centres. The retailer also benefited from a cost reduction programme already in place before the outbreak.
However, Asos struck a cautious note on the trading outlook, despite being “well set” for peak. There has been a “solid start” to the new year but the etailer said it was “retaining caution on outlook for consumer demand whilst economic prospects and lifestyles of 20-somethings remain disrupted”.
Asos chief executive Nick Beighton said: “After a record first half which saw us make progress in addressing the performance issues of the previous financial year, the second half will always be defined by our response to Covid-19.
“I am proud of the way Asos met this challenge head on, putting our duty to act as a responsible business at the heart of our approach and working to balance our performance in that context.
“As well as protecting staff, suppliers and customers, we’ve driven efficiency and have emerged a stronger, more resilient and agile business whilst delivering strong profit and cash generation.
“I am pleased by the improvements we have made this year but there is still more for us to do to continue our progress. Whilst life for our 20-something customers is unlikely to return to normal for quite some time, Asos will continue to engage, respond and adapt as one of the few truly global leaders in online fashion retail.”
No comments yet