ASOS Confident in Growth Despite Tariff Uncertainty
LONDON (Reuters) -British online fashion retailer ASOS reported half-year earnings ahead of expectations and forecast further growth in 2025, adding that it could also switch sourcing and distribution if needed to avoid the fallout from U.S. tariffs.
While the jump in earnings on Thursday showed ASOS's long-term plan to return to growth and rebuild its fast fashion credentials with its 20-something customer base was starting to work, the retailer faces a new threat from global tariffs.
The company said its more agile commercial model, which focuses on providing shoppers with new styles more quickly, put it in good shape to respond to the upheaval in global trade.
"We continue to closely monitor the evolving U.S. tariff outlook and see opportunity to respond as necessary through improved agility and flexibility of our sourcing and distribution model," ASOS said in its statement.
For the 26 weeks to March 2, ASOS posted half-year adjusted earnings (EBITDA) of 42.5 million pounds ($56.43 million), higher than the 34 million pounds consensus forecast, and said it was on track for annual earnings to come in at between 130 million pounds to 150 million pounds.
ASOS, which is facing growing competition from Chinese-founded fast fashion giant Shein and Chinese online retailer Temu, in January said it would mothball its U.S. warehouse, meaning most U.S. sales are shipped from Britain in individual packages.
Analysts expect its U.S. business to generate about 300 million pounds of revenue in the current financial year, or about 10% of total sales.
($1 = 0.7532 pounds)
(Reporting by Sarah Young; Editing by Kate Holton)
