Online clothing retailer Asos has fallen to an annual loss and warned that the “incredibly challenging” economic backdrop means it will stay in the red over the first half of its new financial year.
Asos has announced pre-tax losses of £31.9m for the year to August 31, compared to profits of £177.1m the previous year. It said the ongoing cost of living crisis meant trading was tougher than expected as shoppers have cut their spending.
The group confirmed it had secured new terms with its lenders on a £350 million borrowing facility after shares slumped on Tuesday as it revealed it was in talks over changes to its financial covenants amid more difficult trading.
