Asos expects online demand for clothes to outlast pandemic

Online trend retailer Asos has mentioned its full-year outlook has been boosted by a tripling in first-half earnings, nevertheless it stays cautious about financial prospects for its core 20-something prospects.

Pre-tax revenue within the six months to the tip of February was £106m, up from £30.5m final yr partly because of “exceptional” gross sales development of 39 per cent within the UK and £48.5m of advantages from Covid-19, largely within the type of decrease return charges.

“In the coming months we expect a portion of consumer demand will move back to stores as restrictions are eased throughout our markets, but we expect online penetration to remain structurally higher than pre Covid-19 levels,” the corporate mentioned in a press release.

The firm mentioned it remained “mindful” of uncertainty and “the likely economic impact” on its customers, and warned that freight prices had been working at a lot larger ranges than regular. It additionally anticipated the advantages of decrease returns to steadily unwind as restrictions on socialising had been eliminated, as a result of garments purchased for particular events usually have larger return charges than informal put on.

“As a result, our expectations for the full year have increased in line with our outperformance in the first half, and our outlook for the second half is unchanged,” it concluded.

It mentioned the mixing of Topshop, the one-time jewel in Sir Philip Green’s retail empire that it acquired out of administration in February, was continuing in line with plan.