British fashion retailer ASOS has reported a 275% jump in first-half profit due to the popularity that e-commerce has gained during the pandemic, but the company has been cautious in its near-term outlook due to concerns about the economic prospects of its customers.
ASOS said its outlook for 2020-21 earnings has increased in line with its performance in the first half of the year, but its outlook for the second half has not changed, Nick Beighton, CEO of the twenty-something fashion company, said ASOS is in good shape to meet the demand for fashion and products during periods of social events and holidays when life will return to normal after the health crisis is over. According to the stock market, the company’s share recorded today a decrease of 4.67%.
ASOS continued to do its business during the quarantine imposed during the pandemic crisis while its competitors on the ground were forced to close their stores, and the company also benefited from the decrease in the number of returns of its merchandise by buyers, in addition to investing heavily in its products as well as in pricing and marketing as well.
ASOS reports that it made an adjusted profit of 112.9 million pounds (equivalent to 155.3 million dollars) before tax during the six-month period to 28 February, note that its profits were 30.1 million pounds during the first half of 2019-20, and sales increased by 25% at the fixed exchange rate to 1.98 billion pounds, with the number of its customers increasing by about 1.5 million customers to become its customer base consisting of 24 .9 million customers, analysts’ predictions for total year earnings are likely to rise from £170 million to around £190-200 million.