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ASOS share price falls as sales growth disappoints

The share price of ASOS (LON: ASC) fell by 10 percent despite posting solid improvements in revenues and profits.

With revenues of £3.2bn and profit before tax of £142m for the full year – the online retailer saw respective growth of 19% and 329% in these areas.

However, with the retailer surging since its March-lows in share price, the revenue growth it posted for the full year appeared to underwhelm investors.

Within the US, it posted growth of 18% however, rival Boohoo posted US growth of 83% recently, albeit on a 6 month basis.

Nick Beighton, CEO, commented:

“After a record first half which saw us make progress in addressing the performance issues of the previous financial year, the second half will always be defined by our response to Covid-19. I am proud of the way ASOS met this challenge head on, putting our duty to act as a responsible business at the heart of our approach and working to balance our performance in that context. As well as protecting staff, suppliers and customers, we’ve driven efficiency and have emerged a stronger, more resilient and agile business whilst delivering strong profit and cash generation.

I am pleased by the improvements we have made this year but there is still more for us to do to continue our progress. Whilst life for our 20-something customers is unlikely to return to normal for quite some time, ASOS will continue to engage, respond and adapt as one of the few truly global leaders in online fashion retail.”

The ASC share price is currently trading at 4884p.

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