ASOS posts strong full year sales and profit growth
Online fashion retailer ASOS has posted a strong increase in both sales and profits in the year to 31 August after it benefited from a significant reduction in returns rates.
Group revenue climbed by 19% to £3.26 billion as retail sales rose by the same percentage. The retailer saw growth across all of its geographical areas with sales rising by 18% in the UK and 22% in the EU. There was also an 18% uplift in sales in both the US and its rest of the world business.
Meanwhile, pre-tax profit increased to £142.1 million from £33.1 million in the previous year. The retailer said Covid-19 had a substantial impact on the business, although increased costs were offset by more favourable returns rates.
During the period, ASOS grew its active customer base by 3.1 million to 23.4 million.
Nick Beighton, ASOS chief executive, 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. 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.”
ASOS said it has made a “solid” start to the new financial year, but is remaining cautious over the outlook for consumer demand due to the ongoing disruption caused by the Covid-19 pandemic.
Beighton added: “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.”
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