Sale rates soar for online retailer ASOS
Online fashion giant ASOS saw sales continue to skyrocket despite physical competitors re-opening, per the firm’s latest market update.
UK sales increased 60 per cent for the retailer in the four months to the end of June, with active customers growing by a further 1.2m.
Chief executive officer Nick Beighton said, “ASOS has delivered another strong performance against a backdrop of continued social restrictions and global supply chain pressures.”
Asos has been one of the winners of the pandemic, capitalising on the closure of high street stores with astronomical sales growth.
The firm expects full-year profit to be broadly in line with current expectations.
The uncertainty of COVID-19 and poor seasonal weather impacted the final weeks of trade in the UK, as customer demand for products declined. Despite this decrease, ASOS say they were able to increase their promotional activity.
Growth in the EU has also increased, particularly in Germany.
After striking a deal with US department brand Nordstrom earlier this week to sell Topshop in their US stores the company expects more global opportunities will see the brand grow. The trading statement suggests demand in the US has accelerated over the four months.
ASOS hopes that the deal will help build awareness and engagement for the company in North America.
John Moore, Senior Investment Manager at Brewin Dolphin, said “the short-term uncertainty may unsettle some, but with a strong balance sheet and increased geographical diversification, Asos is in a good position as its target market eagerly awaits the next stage of lockdown measures easing.”