Online Retailer’s Revenue Grows 1% Despite Challenges
- Asos reports a pre-tax loss of £15.8m for H1 FY21, down from £106.4m in the previous year
- Revenue growth expected to drop by 2% due to Russia exit
- Supply chain constraints and Covid restrictions impacted newness and stock availability
- UK and US sales grew by 8% and 11% respectively
- EU sales remained subdued at 1%
- Active customers increased by 0.3 million to 26.7 million, up 7% YoY
- Premier customers grew by 24% YoY
- Sales growth expected to accelerate in the second half of the year due to improved stock position and easing of comparative growth rates
Asos has reported a pre-tax loss of £15.8m for the first half of FY2022, down from £106.4m in the previous year due to supply chain constraints and Covid restrictions impacting newness and stock availability. The company also expects a further £14m hit following its decision to suspend sales in Russia. Despite these challenges, revenue grew 1% to £2bn, with UK and US sales increasing by 8% and 11% respectively. EU sales remained subdued at 1%. Active customers increased by 0.3 million to 26.7 million, reflecting a 7% growth year-on-year, while Premier customers grew by 24% YoY. Asos expects sales growth to accelerate in the second half of the year due to improved stock position and easing of comparative growth rates.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Asos’ financial performance, including specific numbers and details about its revenue growth, profit decline, and the impact of various factors such as supply chain constraints, Covid restrictions, and the decision to suspend sales in Russia. It also includes quotes from a company executive that support the overall narrative.
Noise Level: 3
Noise Justification: The article provides relevant information about Asos’ financial performance and its decision to suspend sales in Russia, as well as insights into the impact of supply chain constraints and Covid-19 on the company’s growth. It also discusses the expected acceleration in sales growth for the second half of the year. The information is presented in a clear and concise manner without any unnecessary filler content or exaggerations.
Financial Relevance: Yes
Financial Markets Impacted: Asos stock price and retail sector
Financial Rating Justification: The article discusses Asos’s financial performance, including a 115% decrease in pre-tax profits, the impact of supply chain constraints on revenue growth, and the decision to suspend sales in Russia. These factors affect the company’s stock price and the broader retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
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