Asos revenue grows by 10% driven by 17% surge in international markets

Source: Mintel 15-07-2020

For the four months ending June 30, Asos has reported a 10% rise to £1 billion in group revenue as demand surged during lockdown. Growth for the group was driven by a 17% increase in sales for its international markets which amounted to £654 million in the quarter.

Its European market performed particularly well with sales growing 22% to £328 million while UK sales dipped by 1% to £329 million. US sales grew 3% and totalled £125 million during the period.

“As with fellow pureplay young fashion retailer boohoo, ASOS' jump in total sales has been credited to growth in 'lockdown products' such as loungewear and skincare. Notably, however, its UK sales have decreased. Although the pandemic has certainly benefited online retailers more than others, it is clear that any appetite for fashion purchasing during the lockdown in the UK has waned significantly. Data from Mintel's latest fashion tracker shows steep declines in the number of people who bought into the main fashion categories of clothing, underwear and footwear, with just 29% of people saying they bought clothing in the three months leading up to June 2020 compared with 49% of people who bought clothing the previous year. However, as lockdown eases ASOS is in a good position to pick up sales in the UK - as evidenced by its strong EU results. Although shops have reopened, many are still not confident to go into stores to try on items and with social distancing measures in place, the process is more timely. Instead, many will undoubtedly continue to shop online and ASOS is well set up to deliver a reliable online shopping experience.”