Asos hit by weak August sales as inflation weighs on shoppers
Profits are now anticipated to be ‘around the bottom end of company guidance’ due to the slowdown in activity.
Asos has cautioned over profits after sales fell below expectations in August as it warned consumers may be reducing their spending due to the cost of living crisis.
The online fashion giant said it saw “good growth” in June and July and expects total sales for the year ended August 31 2022 to remain within its market expectations.
However, it said it is now witnessing “the impact of accelerating inflationary pressures on consumers and a slow start to Autumn/Winter shopping”.
Profits are now anticipated to be “around the bottom end of company guidance” due to the slowdown in activity.
It is due to report sales growth, at constant currency, of around 2% for the year, with net debt of around £150m.
The company said: “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 revealed on 17 August that its chief operating officer (COO) and chief financial officer (CFO), Mat Dunn, will step down from his roles as the company restructures its executive team.
