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Asos warns on profits amid weakening sales as inflation hits shoppers


Asos has said that sales in August were weaker than expected amid pressure on consumers during the cost of living crisis
“Asos remains cautious about the outlook for consumer spending,” the company said.
// Asos says August sales had been weaker than expected due to accelerating inflationary pressures
// Full-year profit will come in at the lower end of guidance, with sales growth of only about 2%

Asos has said that sales in August were weaker than expected amid pressure on consumers during the cost of living crisis, adding that its full-year profit be around the bottom end of its guidance.

“After having seen good growth in June and July, sales in August were weaker than anticipated,” said the online fashion giant.

“This reflected the impact of accelerating inflationary pressures on consumers and a slow start to Autumn/Winter shopping.”

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The business said its sales measured in constant currency for the year to the end of August would rise by about 2%, while its net debt would be about £150 million, both below market consensus and company guidance.

Back in June, it forecast adjusted pretax profit for the year would be between £20 million and £60 million.

It said it remained cautious about the outlook for consumer spending but said it was “managing the business for the current environment”.



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