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Asos says surge in demand to continue beyond lockdown restrictions

Asos gains 1.5m extra active customers

ASOS (LON:ASC), the online clothes seller, announced a 275% jump in its profit halfway through the financial year as it has reaped the benefits from lockdown restrictions.

The AIM-listed company, which recently acquired Topshop among other brands, revealed a 24% increase in its revenue for the six months up to 28 February.

The group’s revenue came in at just under £2bn, with the UK seeing a 39% increase, followed by the EU at 18% and the US with a 16% rise.

The company said the pandemic led to 1.5m extra active customers over the six month period, which means the total is now just under 25m.

“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,” the company said in a statement.

Asos is expecting to gain higher returns moving forward as customers will increasingly buy clothes for special occasions.

“As a result, our expectations for the full year have increased in line with our outperformance in the first half, and our outlook for the second half is unchanged,” Asos said.

Nick Beighton, CEO of Asos, says the integration of Topshop was going smoothly while praising the overall performance of the company:

“We are delighted with our exceptional first-half performance and proud of the work our teams have put in to achieve this. These record results, which include robust growth in sales, customer numbers and profitability, demonstrate the significant progress we have made against all of our strategic priorities and the strength of our execution capability. The swift integration of the Topshop brands and the impressive early customer engagement is also especially pleasing,” said Beighton.

“Looking ahead, while we are mindful of the short-term uncertainty and potential economic consequences of the continuing pandemic, we are confident in the momentum we have built, and excited about delivering on our ambition of being the number one destination for fashion-loving 20-somethings.”

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