Asos had plenty to talk about on Tuesday evening as it updated the markets on the coronavirus impact, released half-year results and announced it's raising extra cash. The overall message was one of strength.
An update from Asos showed sales growth slowing in the EU and US due to logistics issues. But growth in the UK and RoW, plus an end in sight to its warehousing woes all suggest a bright future for the firm.
“Disappointing” was how Asos described its first half as pre-tax profits went into freefall (down 87%). While sales rose 14% for the six months to the end of February, the retail gross margin dropped 60bps.
Asos sales continue to rise in double-digit percentages in Q2, but also continued to rise at a slower rate than previously and that meant investor disappointment, with the firm’s shares falling 5% in early trading.
Asos has promoted Mark Holland, currently supply chain director, to the newly created role of chief operating officer as it pushes ahead with an ambitious multi-year investment in technology and logistics.