ASOS has confirmed that profits fell by 87 per cent in its first half to February 28th due for the most part to delays in stock deliveries. This fall to £14.8 million pushed the online retailer to an operating loss of £4.4 million for the period as compared with £109 million profit for the same period last year.
Like many other fashion retailers, ASOS had been hit by supply chain disruptions that were out of its direct control but it had posted a 4 per cent increase in revenue growth to £2 billion for the half-year, in constant currency.
The business is now readying itself for the impact of halting sales in Russia which could approach a reduction in £14 million in revenue. It is, however, sticking to its guidance of revenue growth in the region of 10 – 15 per cent over the full year.
Chief operating officer Matt Dunn said: “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.”
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