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UK fashion retailer ASOS hit by weak August sales, Retail News, ET Retail

UK fashion retailer ASOS hit by weak August sales

LONDON: British online fashion retailer ASOS expects full-year profit to be around the bottom of its guidance after weaker than projected August sales, it said on Friday.

“Having seen good growth in June and July, sales in August were weaker than anticipated,” it said. “This reflected the impact of accelerating inflationary pressures on consumers and a slow start to Autumn/Winter shopping.”

The owner of rival Primark had warned on Thursday that its customers’ disposable income was declining and that higher costs will squeeze its profit margin in the next financial year.

Shares in ASOS, which have lost 78% in the past 12 months, were trading 0.5% up in early deals.

The company said that sales measured in constant currency for the year to Aug. 31 would rise by about 2% while net debt would be about 150 million pounds ($174 million), both below market consensus and company guidance.

In June it forecast full-year adjusted pretax profit between 20 million and 60 million pounds.

It said it remained cautious about the outlook for consumer spending but is “managing the business for the current environment”.

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