ASOS sales have declined despite Christmas holidays

Budrigannews.com – ASOS (LON:) is a clothing retailer online. reported a revenue decline of 3% for the four months ending in December, hurt by lower demand and delivery disruptions in Britain, the company’s largest market, making it one of the sector’s laggards.

Despite the fact that Britain is in the midst of a cost-of-living crisis, rival online retailers with physical stores like Next outperformed ASOS during this time period. This was because customers prioritized spending money on the holidays and chose to visit stores rather than worry about delivery issues.

ASOS reported a 8% decline in UK sales during the period, which it attributed to sluggish consumer sentiment, earlier Christmas delivery cutoff dates due to delivery issues, and a difficult comparison to last year, when the pandemic favored online shopping.

ASOS’s chief executive, José Antonio Ramos Calamonte, who took over the company last year, wants to change the business model after profits fell after the pandemic restrictions were lifted and a number of operational issues occurred.

During the final months of 2022, more than a dozen days of postal walkouts hampered Britain’s delivery system.

Data from IMRG showed that online retail sales in the UK fell for the first time ever last year, down 10.5% year-over-year, partly due to shops opening after COVID-19 closures, illustrating the difficulty faced by online-only retailers.

In a statement released on Thursday, ASOS stated that, despite reporting a loss for the six months ending in March, it was making good progress on its strategy to increase profitability. During that time, sales in Europe rose by 6%.

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