ASOS reports strong half year

ASOS has posted a 21 per cent uplift in its sales for the year to 29 February with UK sales up by 20 per cent, the EU by 21 per cent, USA by 25 per cent and the rest of the world by 20 per cent. A total of 41.1 million orders were placed which is 19 per cent up year-on-year. The business had reduced non-strategic costs, revitalised product and presentation, as well as focused on social communications to drive customer acquisition and retention.

Reflecting on the current half year, ASOS confirmed that demand has dropped since coronavirus containment measures were introduced, with sales falling by between 20 – 25 per cent in the most recent three weeks of trading. Its warehouses remain operational with effective social distancing measures in place and the majority of its head office staff are working from home.

“ASOS had a strong start to the year, making significant progress against the priorities we set out and delivering a better than anticipated first-half performance, driven by the operational improvements we are making to the business,” commented CEO Nick Beighton.

“Along with other businesses we have been significantly impacted by the Covid-19 outbreak. Our first priority was to quickly put in place the necessary measures to ensure the health and wellbeing of our people. I have been extremely impressed with the pace of change and the flexibility our teams have shown in adopting these new ways of working. I’d like to thank them all for the way they have responded.”

“The Covid crisis is clearly going to continue to be tough for everyone and the short-term outlook remains highly uncertain, but the measures we have taken ensure we are able to be clearly focused on making sure that ASOS emerges as a stronger and better business.”

ASOS has announced a proposed placing of up to 18.8 per cent of its issued share capital to ensure it has protection against a prolonged downturn and is also in discussions for secure a further £60-£80 million extension to its RCF.

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