Asos has revealed that revenue growth for the four months ending in 2020 has ”surpassed expectations”, with the store now expecting profits to be at the top of its forecasts for the financial year to August.
In a post-Christmas trading update, the online fashion retailer reported that group sales were up 23%, with UK sales up 36% at £554m. Asos stated that this “exceptional” UK growth was the result of the brand holding a “strong market position”, due to the fact that high street retailers were forced to close last year.
The brand, which ships internationally, also revealed that sales made across the EU were up 18% at £390m, despite “demand constraints” in markets where hospitality closed but stores remained open.
Despite the revenue increase Asos has also predicted to take a £15m hit from Brexit tariffs in the next financial year – a result of country of origin trading rules.
Nick Beighton, CEO, Asos: “We are really pleased with the strong performance we have delivered, which is testament to both the strength of our multi-brand model and the hard work of our people.
“We have continued to execute well and deliver for our customers, whilst investing into growing our business and driving further efficiency through a strong operational grip.”
He added: “Looking forward, given the uncertainty associated with the virus and the impact on customers’ lives, our cautious outlook for the second half of the year remains unchanged. However, the strength of our performance gives us confidence in our continued progress towards capturing the global opportunity ahead.”