The British clothing retailer Asos Plc was only able to increase its sales slightly during the Christmas season. In an interim report published on Thursday, the group cited the expected delivery difficulties and the “inconsistent demand due to the increasing number of Covid cases in large parts of Great Britain, Europe and the USA” as the reasons for the comparatively weak growth.
In the four months leading up to December 31, Asos generated consolidated sales of 1.39 billion pounds sterling (1.67 billion euros) and was only able to exceed the level of the same period of the previous year by two percent. Adjusted for changes in exchange rates, sales rose by five percent and were therefore in line with expectations.
Sales in the British home market developed positively above average: They increased by 13 percent to 645.2 million British pounds. In the USA, sales grew by seven percent (currency-adjusted +11 percent) to 172.6 percent. The current difficulties were more noticeable in the states of the European Union, where sales fell by three percent to 390.2 million British pounds. Adjusted for exchange rate changes, however, it exceeded the previous year’s level by two percent. In the rest of the world, sales fell by 20 percent (currency-adjusted -15 percent) to 185.1 million British pounds.
As a result of higher delivery costs and increased price reductions, the group also had to accept a lower gross margin. Here, however, the company expects an upward trend in the further course of the financial year as soon as the most recent delivery problems subside and stocks reach normal levels.
Despite the setback in the Christmas business and the ongoing uncertainties regarding the further effects of the Omikron variant of the coronavirus, the company stuck to its annual forecasts. It still expects sales to grow by 10 to 15 percent year-on-year and earnings before taxes adjusted for one-off effects in the range of 110 to 140 million British pounds.