Top of the shops: Asos sales growth set to continue due to lockdown gains
Asos is set to report a further jump in earnings and sales as continuing lockdown restrictions have kept consumers shopping online.
Revenue is expected to jump 22 per cent to around £1.95bn when it updates shareholders on its trading performance for the half year to February.
Earnings are also expected to surge 135 per cent due to the increase in customer numbers during the period.
Asos, which has beaten earnings expectations in six of the past eight financial updates, has been one of the success stories of the pandemic.
The closure of non-essential stores has accelerated the growth of online shopping, and Asos has been able to cater for an increase in demand for leisurewear, while the number of party dresses sold has fallen.
Analysts at JP Morgan said they expect Asos to deliver pre-tax profits of £86m for the period but warned that it could face an impact of around £2m from post-Brexit trade tariffs.
They also predicted that the retailer could expect to benefit from at least £40m in savings, primarily driven by lower returns from customers keen to avoid lengthy Post Office queues.
Although its shares are some way below its £80 all-time peak from 2018, they are closing in on a 12-month high and could push higher if bosses lay out an optimistic outlook on Thursday.
Shareholders will also be keen to hear about how its former Arcadia brands – Topshop, Topman, Miss Selfridge and HIIT – have performed since they were bought in a £265m rescue deal at the start of February.
About three weeks later, Asos relaunched online platforms for the brands.