April 23 (Reuters) - ASOS said on Thursday that it has begun seeking refunds for U.S. tariffs paid during the first half of the year, as the British fashion retailer pursues a margin-focused
ASOS highlights improving performance, pursues US tariff refunds
ASOS Reports Q3 Progress and Seeks Tariff Refunds Amid Challenging Retail Climate
By Yamini Kalia
April 23 (Reuters) - ASOS said on Thursday it had improved its performance in the third quarter, adding that the British online retailer is seeking refunds for 7 million pounds ($9.44 million) in U.S. tariffs paid during the first half of the year.
Market Reaction and Financial Performance
Shares in ASOS rose by as much as 10.7% to 249 pence after volatile early moves as investors digested the performance report, which followed last month's release of its topline numbers for the 26 weeks to March 1.
Gross Merchandise Value and Customer Growth
ASOS said its gross merchandise value (GMV) growth showed sequential improvement in the third quarter and new customer growth was up 9% in March, the first month of growth since September 2021, as it fends off competition from cheaper rivals and prioritises margins.
Analyst Perspective
"The new customer growth is a good lead indicator for top line, so that gives us confidence it the long term turnaround," said Shore Capital analyst Katie Cousins.
Gloomy Retail Environment
GLOOMY RETAIL ENVIRONMENT
Retailers globally are facing falls in customer spending, higher energy costs and supply-chain snags resulting from the Iran war, with some pushing up price tags in response.
ASOS Pricing Strategy
"We price according to the market ... if the market is not changing the prices, we are not changing the prices," CEO José Antonio Ramos Calamonte told reporters when asked whether ASOS had taken any pricing actions in response to the conflict.
Industry Reactions and Legal Actions
British clothing retailer Next said last month it may need to raise prices in June if the conflict persists.
Thousands of companies around the world are filing lawsuits challenging U.S. President Donald Trump's sweeping tariffs and seeking refunds on duties paid, after the levies were deemed illegal by the U.S. Supreme Court in February.
Impact on Online Retailers
Online retailers are particularly vulnerable to duty costs on imported goods.
($1 = 0.7413 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Subhranshu Sahu and Alexander Smith)
