Asos shares slide 15% despite sales boost

Asos shares have slid 15 per cent on news of reduced sales growth and increased Brexit and supply chain costs, pushing shares to their lowest value in a year.

The slide comes despite a worldwide sales rise of 31 per cent to £1.29 billion, and a 60 per cent UK sales rise to £526.4 million.

The retailer said it expected “volatility” as the High Street re-opens and Covid regulations soften.

The retailer highlighted that the cost of shipping goods from China “had risen ten times over” and that air travel costs had increased in general with less planes in the air.

However, the retailer said revenues had been strong across the European Union, particularly in Germany.

Sales in Southern Europe have been less encouraging according to the retailer, as the pandemic has heavily impacted employment among ASOS’s core demographic of young people.

“Asos has delivered another strong performance against a backdrop of continued social restrictions and global supply chain pressures,” said chief executive at Asos Nick Beighton. “Although mindful of the continued impacts of the pandemic on our customers in the short term, we believe that the structure of the global e-commerce fashion market has changed forever, which will drive an increase in online fashion sales over the long term.

He added: “We’re excited about the size of the prize ahead of us and the opportunity of delivering on our ambition of being the number one destination for fashion-loving 20-somethings.”

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