LONDON (Reuters) – Britain’s ASOS group reported a first-half loss on Wednesday, hurt by a drop in consumer purchases and an increase in product returns, but said it was confident of a return to profit in the second semester.
The online fashion retailer, which announced a major restructuring last October, posted an adjusted pre-tax loss of 87.4 million pounds (about 100.21 billion euros) in the six months to February 28 on Wednesday. , compared to a profit of 14.8 million pounds in the same period last year.
Revenue fell 10% at constant currency to £1.84 billion in the first half.
The title ASOS fell by 8.2% at 7:37 GMT on the London Stock Exchange.
ASOS and rival Boohoo have enjoyed rapid growth in recent years, particularly during the COVID-19 pandemic and the surge in online shopping as mass retail rivals were shuttered. But supply chain issues, rising living costs and competition from rivals like China’s Shein have weighed on their business models.
The value of ASOS stock has halved over the past year. Some analysts fear the company may need to raise new capital.
Assuming no improvement in the external business environment, the company forecasts a “double-digit” drop in sales in the second half but with adjusted operating profit of 40 to 60 million. of books.
(Reporting by James Davey, Dina Kartit, editing by Kate Entringer)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
