Asos set to bag a Brexit win this week when it reports its results

Helen Cahill
Follow Helen
Half of Asos' customers are overseas (Source: Asos)

Asos is set to be crowned a Brexit winner this week when it reports its results for the year on Tuesday, with profits expected to rise by over 30 per cent.

Half of Asos' customers are overseas, helping the online retailer mitigate against the pain of the slump in sterling. It's fortunes are in stark contrast to those of Tesco, which has been fighting price rises from suppliers on the back of the pound's fall.

Read more: ASOS says "it isn't very practical" to run a warehouse like the Victorians

Analysts at Shore Capital said currency movements "will have helped Asos finish the financial year with a flourish". They have predicted profit before tax will rise from £46.1m to £63.1m, a jump of 37 per cent.

Both sales and revenues are predicted to grow by a quarter.

The results come at a contentious time for the millennial-focussed retailer. Asos has had to bat off accusations that it has been mistreating its workers after Labour MP Owen Smith said it was "the new Sports Direct".

Shore Capital analysts George Mensah and Clive Black said they had discussed the allegations with the business and wrote that they "felt compelled to comment" on them. The analysts said Asos had invested £3m in its warehouse facilities over the past year, allow staff to go to the loo when they want and do not employ any staff of zero hours contracts.

The allegations stem from work done by union GMB. Asos said in a statement recently that GMB has never been able to get the support required to unionise its workers.

"We are not averse to unionising our warehouse – far from it, but only when our people want it," Asos said.

Related articles