Asos continues to slide despite strong Black FridayComments Off on Asos continues to slide despite strong Black Friday
Despite strong trading in the UK, international sales tumbled 2% in the period and investors remained unhappy, with the online fashion retailer’s share price slipping 6% to 2236p — down more than 60% since the start of the year.
Chief executive Nick Robertson said: “There is a consistent story. The UK is stonking but international is more challenging. But we are doing all the right things.”
The online fashion outfit said its investment in reducing prices abroad to accommodate currency changes was in place and investment in technology and logistics will pay off. It received a £6.3 million pay-out from the arson attack on its warehouse in Barnsley in June which it will re-invest in the business.
A bumper Black Friday and Cyber Monday period boosted its sales in the UK with sequin-encrusted party dresses, ripped black jeans and faux fur big sellers. Robertson added: “I have been doing this for 14 years and every year, Christmas gets bigger. But this year … Black Friday and Cyber Monday were huge. We had our biggest-ever trading week over the ‘cyber’ weekend in November. At peak we were taking seven orders a second.”
The sales frenzy also helped department store group John Lewis to report another strong week with online sales up 32% after Cyber Monday.
Chilly weather led to a spike in demand for women’s cashmere accessories — up 51% — and men’s knitwear (up 38%) week on week.
Sales grew to £160 million — up 10.8% on last year but down 10.6% on the previous week when Black Friday helped sales to soar.