The British online clothing retailer ASOS has warned of lower-than-expected profits after a significant increase in product returns as inflationary pressures hit its 20-year-old consumers.
The company, which also appointed a new chairman and CEO, said it expects revenue to increase by 4% -7% year-on-year by the end of August, with adjusted pre-tax profits reaching-20-60 million (24 -73 million dollars).
Analysts expected profits to reach 83 83 million.
General Manager Mat Dunn stressed that ASOS had pointed out in its half-year results in April that the impact of inflationary pressures had not yet been felt by its consumers.
“What is clear now, given the significant increase in returns we have seen, is that inflationary pressures are increasingly affecting our customers’ buying behavior,” he said, adding that it was too early to know how long this would continue.
He added that he had appointed Jose Antonio Ramos Calamonte, the current commercial director, to the position of managing director and non-executive director Jorgen Lindemann as chairman.
Source: Capital
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