ASOS sales hit by ‘inflationary pressures’

ASOS has said that after seeing good growth in June and July, last month’s sales were “weaker than anticipated”.

The online fashion retailer attributed the slowing down of sales to “accelerating inflationary pressures” on consumers and a slow start to Autumn/Winter shopping.

It said that while full year sales are expected to be in line with market expectations, profit is anticipated to be around the bottom end of company guidance, with constant currency sales growth of two per cent and net debt of £150 million.

“While ASOS remains cautious about the outlook for consumer spending, it continues to make strategic progress and manage the business for the current environment,” said the company in a statement.

ASOS has been struggling with declining sales throughout the year, driven by rising inflation and a hike in the number of returns.

ASOS sales during the spring period were down from around £988 million in 2021 to £983 million this year.

In April, ASOS said it expected to see a £14m hit to profits after its decision to halt trading in Russia following the invasion of Ukraine.

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