Asos today says shoppers are making a slow start to their autumn and winter clothes buying – and warns that full-year profits are likely to be at the low end of expectations.
Sales growth, says Asos, had been strong over the summer in June and July but was weaker than expected in August. “This,” it says in today’s trading update, “reflected the impact of accelerating inflationary pressures on consumers and a slow start to autumn/winter shopping.”
The pureplay fashion retailer said, in a trading statement issued today, that full-year sales and adjusted pre-tax profits for the year to August 31 2022, would be within the range of market expectations, as would net debt. Profits are expected to be towards the bottom end of those expectations, while sales growth, measured on a constant currency basis, is expected to be about 2% while net debt will be about £150m.
Expectations, says Asos, were previously that full-year sales would grow by between 0.3% and 6.3%,with a consensus of 3.2%. Adjusted pre-tax profits were expected to be in the range of £9m to £43m, with a consensus of £28m. Net debt was expected to be in a range from a debt of £235m to positive cash of £101m, with a consensus of a £77m debt.
Calculated on a constant currency basis, which strips out exchange rate fluctuations, sales were expected to come in between 4% and 7%, adjusted pre-tax profits in a range between £20m and £60m, and net debt in a range of £75m to £125m.
Asos is ranked Top500 in RXUK Top500 research.