British e-commerce fashion retailer Asos has recorded a pre-tax profit of £142.1 million for the year that ended 31 August 2020.
That’s an extraordinary jump of 329 per cent on last year’s £33.1 million.
The retailer has attributed the terrific growth in profits to the huge demand for casualwear and sportswear in last 6 months – expectedly so with ‘work from home’ now being the new normal across the globe.
The sales too grew by 19 per cent to clock £3.3 billion.
Though the retailer reported investing £5 million on safety measures at warehouses including on protective equipment, it saved money too by cutting its costs on marketing.
Additionally, more ‘deliberate purchases’ by shoppers meant that there were less products returned – yet again being a major factor in the 329 per cent jump in profits.
The most notable development for the retailer during the period is that its customer base rose by 3.1 million to reach 23.4 million. And it is 7.1 million in the UK alone!
However, Nick Beighton, Chief Executive, Asos, said that shoppers are in all probability going to be hit badly with rise in unemployment across the country as well as an end to taxpayer-funded furlough scheme. It needs to be seen how the holiday season turns out for the retailer.
Following Nick’s warning, shares too have fallen by more than 10pc.
Founded in 2000, the London-based online retailer has its offices in Birmingham, Paris, Berlin and New York.
