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Asos PLC on Friday said sales in August were weaker than expected, blaming a slow start to the autumn-winter shopping season as customers faced belt-tightening.
‘After having seen good growth in June and July, sales in August were weaker than anticipated. This reflected the impact of accelerating inflationary pressures on consumers and a slow start to autumn-winter shopping,’ the online fast-fashion retailer said.
Asos said it expects its full-year sales, adjusted pretax profit and net debt to be within market forecasts. It noted company-complied consensus for the financial year ended August 31 shows total sales growth at 3.2%, adjusted profit at £28 million, and net debt to be £77 million.
The London-based retailer's financial year ended on August 31.
In financial 2021, Asos reported revenue of £3.91 billion and adjusted pretax profit of £193.6 million.
As for its own guidance, Asos expects adjusted profit towards to the bottom end of its £20 million to £60 million range, which has been cut sharply from previous expectations of £110 million to £140 million, constant currency sales growth at 2%, which is below previous guidance of 4% to 7%, and net debt about £150 million.
Company-compiled market consensus showed a range for total sales growth between 0.3% to 6.3%, with consensus at 3.2%. For adjusted profit, the market range stretches from £9 million to £43 million, with consensus at £28 million.
‘While Asos remains cautious about the outlook for consumer spending, it continues to make strategic progress and manage the business for the current environment,’ the company added
Asos will report its financial year 2022 results on October 12.
Shares were up 1.3% at 687.00 pence early Friday in London.
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