Online fashion firm Asos warned that a cutback in spending by shoppers amid the cost-of-living crisis will hit profits, as it announced a new chief executive and chairman.The group slashed its outlook for sales and profits after seeing a sharp rise in order returns as customers rein in spending in the face of rocketing inflation.
It saw UK sales growth drop 4% to £431.8 million in the third quarter to May 31 as returns rates rose, while total group revenues fell to £983.4 million from £987.9 million a year earlier. It now expects full-year sales to grow by 4% to 7% with underlying pre-tax profits of between £20 million and £60 million.
Chief operating officer Mat Dunn said: “What is now clear, based on the significant increase in returns rates that we have seen, is that this inflationary pressure is increasingly impacting our customers’ shopping behaviour. It is too early to tell for how long the current pattern of customer behaviour will continue but we are taking swift and decisive steps to minimise the impacts.”
