Belfast Telegraph

Asos profits plummet by 87% amid expansion

Asos sales grew but its profits fell significantly
Asos sales grew but its profits fell significantly
Asos sales grew but its profits fell significantly

By Ravender Sembhy

Asos has blamed expansion costs and heavy discounting after its half-year profits nose-dived.

The online fashion retailer saw pre-tax profits crash 87% to £4m - a decrease that the company blamed on "temporary transition costs" linked to its warehouses in Europe and Atlanta.

In the US, Asos was hit by staffing issues, resulting in a backlog of orders.

In Europe, the company is in the process of automating its warehouse in Berlin.

Sales grew 14%, or 12% at constant currency, to £1.3bn in the six months to February 28. UK sales rose by 16% and international sales by 12%.

But the firm bemoaned a "disappointing" set of figures, pointing to costs relating to adding new warehouse capacity and a high level of discounting and promotional activity across the market.

Belfast Telegraph

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