ASOS Cautious on Outlook as Funds of 20-Somethings Face Pandemic Hit
CEO Nick Beighton stated the group was nicely positioned to seize demand for merchandise purchased for social occasions and holidays when existence normalised.
Nevertheless, it was retaining warning on the near-term shopper outlook because of uncertainty over the monetary prospects of its youthful buyer base, the timing of world restrictions lifting and attainable additional COVID-19 spikes.
“Something that impacts 20-something lives and economics, we’re conscious of and anxious,” Beighton informed Reuters.
“We’re nonetheless within the midst of the pandemic and we expect the financial penalties are nonetheless to play out.”
Shares within the group had been down 1.6% at 0915 GMT.
ASOS has traded by means of coronavirus lockdowns whereas store-based rivals have needed to shut outlets. It additionally benefited from fewer merchandise being returned by customers, in addition to funding in merchandise, pricing and advertising.
The group made an adjusted pretax revenue of 112.9 million kilos ($155.3 million) for the six months to Feb. 28, up from 30.1 million kilos within the first half of its 2019-20 12 months.
Gross sales rose 25% at fixed trade charges to 1.98 billion kilos as its lively buyer base elevated by 1.5 million to 24.9 million.
Beighton stated he anticipated the consensus of analysts’ full 12 months forecasts to rise from about 170 million kilos to 190-200 million kilos.
“The steer we will probably be giving is successfully, financial institution the overperformance within the first half and maintain it flat for the second half,” he stated.
In February, ASOS purchased the Topshop, Topman, Miss Selfridge and HIIT manufacturers from the directors of Philip Inexperienced’s collapsed Arcadia group for 265 million kilos, aiming to speed up its multi-brand technique.
Beighton stated the combination was progressing to plan and the group was “extremely possible” to make extra acquisitions.
($1 = 0.7268 kilos)
(Reporting by James Davey; Modifying by Costas Pitas and Pravin Char)