ASOS reports "increased confidence" with 20 per cent uplift in revenue

An online fashion retailer has today announced that it expects its revenue for 2020 to be nearly 20 per cent higher than it was last year.

ASOS, which is headquartered in London, announced that its revenue growth is likely to be between 17 per cent and 29 per cent, despite the challenges caused by the pandemic.

The company’s profit before tax is predicted to be approximately £130m to £150m, with “stronger than anticipated” demand for products such as activewear.

ASOS commented: “Looking forward, the consumer and economic outlook remains uncertain and it is unclear how long the current favourable shopping behaviour will persist.

“We are providing updated expectations for the current year reflective of this uncertainty.

The recent trading dynamics will deliver FY20 sales and PBT ahead of market expectations and further support strong underlying cash generation this year.

“However, the extent of this outperformance and any impact beyond this financial year will be driven by how customer shopping behaviour normalises.

“The second half has been a period of tremendous change for ASOS, we have made real progress and shown resilience through the period and are exiting the year in a strong position.

“We have a robust balance sheet, with a differentiated product offer and global infrastructure to leverage. Against this backdrop we have increased confidence that ASOS will continue to progress as one of the few truly global leaders in fashion retail.”