May 10, 2023
Asos widens losses as shoppers cut back
Asos, the online fashion retailer, has reported large losses after shoppers cut back on spending and the cost of living squeezes household budgets. It said it's trading had been "Very challenging" with sales down10% in the UK and 7% in the US. But Asos said it was confident it would return a profit in the next six months. In the UK, Asos said while its sales were still above pre-pandemic levels, trading had been "Volatile from month to month" and hit hardest notably in September, which it blamed on "Negative news flow relating to the cost of living" and in December as a result of postal strikes. Adam Vettese, an analyst at social investing network eToro, said Asos was unfortunate that the cost of living was hitting his target demographic of "Fashion conscious twentysomethings". "Not so long ago, Asos was seen as the future of retailing in this country but it has been a long time since it has lived up to that tag. Ironically, online-only retailers such as Asos and BooHoo were meant to be the final nail in the coffin for bricks and mortar retailers, but the High Street is fighting back post-pandemic," he added.
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