ASOS sales leap by 24% to £2bn over six months

Online fashion giant ASOS has revealed that sales soared during the latest COVID-19 lockdown as high street stores remained closed.

Revenues at the young fashion specialist jumped 24% to £1.98 billion in the six months to the end of February, with pre-tax profits up 253% to £106.4 million.

The business said it benefited particularly from strong UK sales during the period – which covered the second English lockdown in November, the subsequent tiering and eventual third lockdown.

In the UK, ASOS sales were up 39% to £800.4 million, compared with up 18% in the EU, up 16% in the US and up 16% in the rest of the world.

The company said in a statement: “Overall we saw a net COVID-19 tailwind of £48.5 million – a benefit which we expect to reverse once we see restrictions lifted on the hospitality and tourism sectors.”

The integration of the Topshop, Topman and Miss Selfridge brands, which ASOS bought out of administration earlier this year, is also progressing to plan, the company said.

It said it had remained flexible in responding to demands for “lockdown” products, as sales of formal and outfits for social events remained low. Instead, shoppers turned to “activewear” and “casualwear” categories.

Profit margins fell during the period, however, by 200 basis points – or 2% – due to increased freight and duty costs, alongside foreign exchange rate movements going against the company.

ASOS said it hoped to be in a strong position, ready to capitalise on “event-led” products, when social restrictions ease.

The company said: “We believe the shift to online retail as a result of the pandemic and the accelerating consolidation of offline retail has increased consumer confidence in shopping online.

“In the coming months we expect a portion of consumer demand will move back to stores as restrictions are eased throughout our markets, but we expect online penetration to remain structurally higher than pre COVID-19 levels.”