Assos’ pandemic boom that triples profits

As profits triple, Assos’ pandemic boom … and fashion giants predict that customers will continue to flock online after the shop reopens.

Asos has more than tripled its profits, consolidating its position as a lockdown winner.

Another series of results shows that online fashion retailers increased their sales by 24% to £ 2bn and then increased by 253% to £ 106.4m in the six months to the end of February. It was.

He took a bullish look at his post-blockade life and predicted that even after the store reopened on Monday, customers would continue to flock to more and more websites.

Lockdown Winner: Online fashion giant Asos recorded a profit of £ 106.4m, up 253% in the six months to the end of February, after sales grew 24% to £ 2bn. ..

The fate of online rivals such as Asos and Boohoo is in stark contrast to the fate of many once-powered High Street players.

As a sign of how the balance of power has changed, Assos recently removed Topshop and Miss Selfridge brands from control following the collapse of Sir Philip Green’s Arcadia Empire.

And Boohoo rescued the Debenhams brand after the bankruptcy of a 242-year-old department store chain, but not the store.

Marks & Spencer CEO Steve Rowe emailed today admitting that the blockade of Covid forced many stores to close, making it a “bloody year” on High Street.

But he adds: ‘People are still shopping. They are just shopping different things differently.

“I don’t subscribe to the denials who declare the stores and high streets dead. They just need to change, as our understanding of what they are doing is.

M & S’s share has been declining by almost 30% since the beginning of 2020, while Asos’s share has increased by almost 70%.

Asos announced the bumper results and said it had 1.5 million customers in the six months to the end of February, bringing the total to 24.9 million.

It also benefited from what’s called the “Covid-19 tailwind” worth £ 48.5m, which reverses when consumers are able to eat out and spend money to travel again.

However, he claimed that the demand for online shopping would last longer than a pandemic.

We are confident that the brand will gain even more momentum by returning to normal life, supported by the successful deployment of vaccines in several major markets.

“The transition to online retail as a result of the accelerated integration of pandemics and offline retail has increased consumer confidence in online shopping.”

Margins will improve as demand for “cheeky and sexy” dresses and partywear for “my generation” customers recovers and Covid-19 fares normalize.

The UK outperformed Asos’s international market, with six-month sales up 39% to £ 8.4m. This covers the second UK blockade in November and current restrictions.

In other markets, sales were up 18% in Europe, 16% in the United States and 16% in other regions, making businesses more modest.

Overall revenue growth remained below the level seen by peers Zaland and Boohoo, analysts said. The stock price fell 3.4% to 5590p.

Asos said it is also planning to integrate Arcadia’s brands Topshop, Miss Selfridge and HIIT. The brand states that it has achieved “impressive early customer engagement.”


Assos’ pandemic boom that triples profits

Source link Assos’ pandemic boom that triples profits

Back to top button