Aug 12, 2020
Asos raises forecasts as customers return fewer clothes
Ecommerce fashion retailer Asos said that sales and profits were to come in "Significantly ahead" of market expectations for the year, as customers shifted to online shopping during lockdown and returned fewer of its products than expected. The group expects revenue growth to be between 17 and 19 per cent compared with the year before and profit before tax to come in the range of £130m to £150m, supported by "Strong underlying demand" and customers sending fewer unwanted goods back to the retailer. Consensus among analysts polled by Reuters was for revenue to increase by 13 per cent and profit before tax to be about £53m. The company said in a trading update that the lower level of returns was due to shoppers buying "Lockdown" products, such as activewear and cosmetic products, and engaging in more deliberate purchasing. Asos said it was unclear how long the change in shopping behaviour that has benefited its business would persist. Get alerts on ASOS PLC when a new story is published.
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