Asos bags record profit as pandemic continues to drive sales
Asos’ profit has soared to record levels as the online fashion retailer has continued to benefit from the boom in demand for online shopping during the pandemic.
The ecommerce giant reported this morning that adjusted profit before tax – not including acquisition costs – hit £112.9m in the six months ended 28 February, a £82.8m increase on the previous half year.
Revenue surged 25 per cent to £1.98bn as the AIM-listed firm added an extra 1.5m new active customers, taking its total base to 24.9m.
Asos said the growth in new customers had balanced out the impact of fewer event-led reasons for existing customers to shop during lockdown.
The company upped its full-year expectations following the outperformance in the first half.
The retailer also provided an update on its acquisition of Topshop and other former Arcadia brands, saying the integration was progressing well.
There has been “great early customer momentum” for Topshop products, following its acquisition of the former high street brand.
Costs related to the deal are now expected to be around £10m, reduced from £20m.
Richard Lim, chief executive of Retail Economics, said the “pace of the integration was astonishing”.
“Relaunching the brand within three weeks of its acquisition, showing the kind of agility that other retailers aspire to.
“Overall, the retail industry is entering a period of consolidation as brands benefiting from the digital shift become stronger and look to acquire weaker players in the market,” Lim said.
“Further acquisitions should be expected.”