UK fashion retailer ASOS predicts full-year sales buoyed by strong demand, less returns
LONDON (UK) – Online fashion retailer ASOS of the UK has predicted full-year sales and profit much ahead of market expectations. It said it was because of stronger than expected demand and less products being returned by customers.
Shares of the retailer were up 8.5% at 0734 GMT on Wednesday, extending gains in 2020 to 36%. This comes after ASOS said its revenue growth for 2019-20 was slated to be between 17% and 19%.
It has predicted pretax profit of between 130 million pounds and 150 million pounds ($170-$196 million), which is up from 33.1 million in 2018-19.
Other UK-based clothing retailers such as Next and Superdry have also reported more than expected sales.
ASOS is more popular with customers in their 20s and said it expected to see returns normalise once the curbs are eased completely.
Returns did not show an increase due to the strong demand for activewear during the lockdown.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field