Home Business ASOS plc says its pre-tax profit more than tripled in fiscal H1

ASOS plc says its pre-tax profit more than tripled in fiscal H1


ASOS plc (LON: ASC) said on Thursday that its pre-tax profit more than tripled in the first six months of fiscal 2021. The company attributed its hawkish performance to the ongoing Coronavirus pandemic that boosted online shopping in recent months resulting in a 25% growth in H1 sales.

ASOS shares that you can conveniently trade online via a range of user-friendly apps opened at £57.90 on Thursday and are currently trading lower at £56.94 per share. In comparison, the stock had started the year 2021 at £48.11 per share after recovering from a low of £10.60 per share in the first week of April, when the COVID-19 restrictions were at their peak.

ASOS reports £1.98 billion of revenue

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ASOS plc said its pre-tax profit in the six months that concluded on 28th February printed at £106.4 million. In the same period last year, its profit before tax was capped at a sharply lower £30.1 million.

The online fashion and cosmetic retailer valued its revenue in the first half at £1.98 billion versus the year-ago figure of £1.60 billion. ASOS said its sales jumped 16% in the United States, 18% in Europe, and 39% in the United Kingdom. Its sales in the rest of the world, the company added, also saw a 16% year over year growth.  

For the second half, ASOS said its guidance remains unchanged. It, however, forecasts better than previously expected performance for the full financial year, thanks to robust results in fiscal H1. In January, the retailer had warned of a £15 million hit due to the post-Brexit tariffs.

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CEO Nick Beighton’s comments on Thursday

Chief Executive Nick Beighton commented on the earnings report on Thursday and said:

“Looking ahead, while we are mindful of the short-term uncertainty and potential economic consequences of the continuing pandemic, we are confident in the momentum we have built, and excited about delivering on our ambition.”

The non-recurring acquisition and integration costs that were previously expected around £20 million, ASOS said, are now likely to register at £10 million instead. The London-based company acquired Arcadia brand Topshop in February.

ASOS performed largely upbeat in the stock market last year with an annual gain of close to 40%. At the time of writing, the online fashion and cosmetic retailer has a market cap of £5.69 billion and a price to earnings ratio of 45.46.