ASOS profits down as they still pay for fire
Fashion-flingers, ASOS, are in a spot of financial bother with the company reporting a 10% drop in pre-tax profit in the six months to the end of February. This is down from the same period last year, but you have to remember that they were hammered by the huge warehouse fire they suffered last year.
They said that their balance sheet included "business interruption reimbursements of £6.3m in respect of a warehouse fire in the prior financial year".
You may recall that the fire at their Barnsley warehouse damaged 20% of the stock it held.
Remarkably at the time, ASOS managed to start taking and shipping orders a mere 48 hours after the fire had happened and then kicked off a sale which 50% discounts and the like.
Despite the drop in profits, the fashion retailer has seen a 14% rise in overall retail sales for the six-month period compared to the previous year.
Chief executive Nick Robertson says: "Our customer engagement remains high, with growth in visits, average order frequency, average basket size and conversion all improving. Our active customers grew by 13%, exceeding the nine million mark for the first time."
"With our continued investment in our international rice competitiveness gaining traction, momentum in the business is building. This gives us confidence in the outlook for the second half and that full year profit and margin will be in line with expectations."