Fourth Covid wave weighs down Asos' sales growth

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In the last four months of 2021, Asos saw its sales growth slow down significantly, due to ongoing logistical constraints and increased uncertainty caused by the Omicron variant.

 

Strong domestic performance

The online fashion group's total revenues grew 'only' by 2 % (5 % at constant currency) to 1.39 billion pounds (1.6 billion euros), far less than the double-digit growth rates we usually see at the British e-tailer. In Europe and the rest-of-world region, Asos had to slow down due to the fourth Covid wave. While the damage in continental Europe was not too bad, with a 3 % decline, the fashion company saw its revenue plummet by a fifth in the rest of the world.

 

In the United Kingdom and the United States, Asos continued to perform well: British sales increased by 13 %, driven by strong "demand for going out wear". In the US, sales grew 7 % to 172.6 million pounds (205 million euros) despite significant port congestion and supply chain disruptions that prevented the company from fully meeting demand.

 

Increasing prices

Asos will now raise its prices by 1 to 6 % to compensate for increased costs incurred at its own brands and partner brands, Fashion Network writes.

 

Despite the slowdown in growth, the fashion company is sticking to its earlier full-year forecast of 10 to 15 % revenue growth and adjusted pre-tax profit of between 110 and 140 million pounds (130 - 155 million euros).