[ad_1]
UK online fashion retailer ASOS announced Wednesday an 87% drop in pre-tax profit in the first half of the year, negatively impacted by weak trade in the Christmas season and by the logistical problems encountered in the market. American.
The company has maintained its forecast for sales, profit margins and capital expenditures for the full year by investing heavily in its technology platforms and infrastructure such as warehouses and distribution centers.
"ASOS is capable of a lot more," said General Manager Nick Beighton in a statement. "We have identified a number of things that we can improve and take action accordingly."
Profitability was lower than in the first half due to discounts at the retailer, which sells private labels and fashion to a younger clientele via its website and application, but improved in the second quarter.
The changing purchasing habits and uncertainties badociated with the UK's exit from the European Union have resulted in intense promotional activity at British retailers, which account for less than a third of sales in the United Kingdom. 39; ASOS.
ASOS 'new US warehouse struggled to meet demand, limiting sales and adding challenges in France and Germany. In December, the company issued a profit warning, which plunged its shares to a four-year low.
Profit before tax for the first six months of February was set at £ 4 million, with sales up 14% to £ 1.31 billion. This corresponded to the expectations of badysts.
ASOS maintained its guidance for the full year for sales growth of 15% and a 2% profit margin before interest and taxes (EBIT).
Source link
