British online fashion retailer ASOS saw its annual profits more than quadruple despite the ongoing coronavirus pandemic. The company's pre-tax profits increased by 329% to £142.1m ($185.1).
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- Total sales in the UK rose by 18%, while it went by up more than 20% in both the US and the European Union. Sales of sportswear increased by 50%
- The company was able to add 3 million new customers in the past year. ASOS currently has 23.4 million customers with 7 million based in the UK.
- ASOS managed to cut marketing costs and the increased automation in its European warehouse helped it become more efficient. The company revealed it's investing £5m ($6.9) into safety measures at its warehouse after being criticized in March.
- CEO Nick Beighton warned that the economic effects of the pandemic on 20-29 years olds could negatively impact profits going forward. 20-29-year-olds are the company's main demographic, and Beighton warned unemployment and uncertainty about the future could result in less spending.
- Beighton also warned that a Brexit deal with tariffs would increase the company's operating costs and reduce profits. These comments resulted in share prices falling by 10%.