On Wednesday, UK online fashion retailer ASOS (LON: ASC) reported a strong Christmas deal, increasing its six-month profit forecast by £40 million. -brexit customs duties could cost £15 million next year.
Analysts forecast pre-tax profits from £115-170 million compared to pre-tax profits of £142.1 million for 2019-2020, with ASOS continuing COVID- He said he hopes the 19 limit will keep online sales high. First half of 2021. Overall sales increased 24% to £1.36 billion in the four months ended December 31st, with the company reporting another 1.1 million new customers over the same period.
This performance was driven by a 36% jump on UK sales alone, rising to £554.1 million, with online spending rising as lockdown restrictions returned in November.
ASOS left its full-year sales forecast unchanged, but Chief Executive Nick Beighton explained.
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“Looking forward, given the uncertainty associated with the virus and the impact on customer lives, our cautious outlook remains the same for the second half of this year. However, our performance strength will be the future global trend. It gives us confidence in the continued progress to gain opportunities.”
“We are truly pleased with the strong performance we have provided. This is a testament to both the strength of the multi-brand model and the efforts of people. We invest in business growth and are strong. It continues to be well executed and delivered for our customers, while promoting further efficiency through operational grips.”
Nevertheless, it cannot completely escape the effects of Brexit. ASOS says it expects to bear excessive costs due to issues with country of origin. Since the UK left the EU, the company has been able to continue selling products on its European websites, but most of them are shipped from warehouses in Berlin, so no duties have been incurred, but the product is dispatched. It may not be possible. Central Berlin Warehouse.
“In all circumstances, we were unable to deliver all our products directly to Berlin,” Beighton told Reuters, explaining that ASOS is dealing with 800 third-party brands and their own branded products.
“Some of the small brands couldn’t be rebuilt to go straight to Berlin rather than Barnsley, so there’s still some rebalances that we need to redo. As they grow, we’re going to have to do that. It works to mitigate the impact of costs.”
The UK’s Brexit trade agreement was charged to maintain Zero Tur Fif and Zero Kota access to the bloc’s single market, but Beighton disagrees with how it actually turned out.
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ASOS shares extended profits of more than 56% over the past 12 months, up 3.46% at 14:58 GMT on Wednesday at 5376.00p.
