Britain’s ASOS sees quadrupling of profit on strong pandemic demand

LONDON (Reuters) – British on-line vogue retailer ASOS ASOS.L on Wednesday reported a quadrupling in full-year profit, benefiting from strong demand in the course of the COVID-19 pandemic and forecast extra enchancment within the 2020-21 yr.

ASOS, whose quick fashions are well-liked with customers of their twenties, made a pretax profit of 142.1 million kilos within the yr to Aug. 31 – consistent with steering in August and up from 33.1 million kilos in the identical interval final yr.

Sales rose 19% to three.26 billion kilos because it served 23.four million clients, up three.1 million.

ASOS traded via coronavius lockdowns when store-based rivals needed to shut outlets for weeks.

The group stated it had made a “solid” begin to the brand new monetary yr and was nicely arrange for the height Christmas buying and selling interval.

However, it stated it was cautious on the outlook for client demand while the financial prospects and life of 20-somethings stay disrupted.

“Whilst life for our 20-something customers is unlikely to return to normal for quite some time, ASOS will continue to engage, respond and adapt as one of the few truly global leaders in online fashion retail,” stated CEO Nick Beighton.

Shares in ASOS, which have doubled over the past yr, closed Tuesday at 5,378 pence, valuing the enterprise at 5.four billion kilos – greater than twice the market capitalisation of Marks & Spencer MKS.L, Britain’s greatest clothes retailer by gross sales.

Reporting by James Davey, Editing by Paul Sandle and Sarah Young

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