British online fashion retailer ASOS reported an 87% fall in first half profit, reflecting supply chain constraints impacting stock availability and cost inflation, though it did maintain its guidance for the full year.
The group, which in October warned on full year profit and parted ways with its CEO, said on Tuesday it made adjusted profit before tax of 14.8 million pounds ($19.3 million) in the six months to Feb. 28, down from 112.9 million pounds in the previous corresponding period. Revenue rose 4% to 2.0 billion pounds.
Apart from the removal of Russia's contribution to the second half following last month's decision to suspend sales, ASOS's full year 2021-22 guidance remained unchanged.
ASOS, which sells fast-fashion aimed at 20-somethings, said there was a greater risk to guidance than normal in the second half as the full impact of recent inflationary pressure on consumers and the potential impact on discretionary spending were yet to be felt.
However, it said that despite the external challenges it expected sales growth to accelerate in the second half.
ASOS said that its forecast reflected an improved stock profile, the easing of comparative growth rates, the return of event and holiday-led demand, increased marketing investment and improved lead-times as supply chain constraints ease.
Shares in ASOS, down 71% over the last year, closed Monday at 1,538 pence, valuing the business at 1.54 billion pounds.