Asos expected to post 135% earnings rise in interim figures

Ecommerce

Asos is expected to report skyrocketing earnings of 135 per cent over its previous interim despite increased cross-border Brexit costs.

Analysts have predicted the online fashion giant will reveal a revenue rise of 22 per cent to around £1.95 billion over the six months to February next week.

Financial giant JP Morgan also predicted interim pre-tax profits of £86 million, benefiting from around £40 million in savings driven by a steep drop in returned items during the pandemic.

It warned that Asos, which recently acquired collapsed high street giants Topshop, Topman and Miss Selfridge, could be hit by £2 million in post-Brexit trade tariffs.

READ MORE: Topshop launches new full collection on Asos as its online transition is completed

Analysts also said that while Asos has seen 2.6 billion visits to its website, only around three per cent of those visitors went on to make a purchase, meaning there is plenty of room for sales expansion.

Asos has now beaten analyst expectations for six of the past eight financial periods, and investors will be hoping for a repeat of its recent form.

Its share price now sits at an 18-month high, with further gains expected in the coming days.

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