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in lead)
* Forecasts 2019-20 sales up 17-19%
* Sees profit of 130-150 mln stg
* Says unclear how long favourable shopping behaviour will
persist
* Shares up 8.5%
LONDON, Aug 12 (Reuters) - British online fashion retailer
ASOS forecast full-year sales and profit significantly
ahead of market expectations, saying it was benefiting from
stronger than anticipated underlying demand and fewer products
being returned by shoppers.
Shares in ASOS were up 8.5% at 0734 GMT on Wednesday,
extending gains in 2020 to 36% after it said revenue growth for
its 2019-20 year was now expected to be between 17% and 19%.
It forecast pretax profit in the region of 130 million
pounds to 150 million pounds ($170-$196 million), up from 33.1
million in 2018-19.
Several British clothing retailers, including Next
and Superdry, have recently reported better than
expected trading as Britain emerged from coronavirus lockdown.
ASOS, whose fast fashions are popular with shoppers in their
twenties, said it had expected to see return levels normalise
once lockdown measures eased and customers were able to ship
returns and felt more comfortable doing so.
However, it said returns were not increasing at the rate it
had anticipated due to strong demand during the lockdown for
activewear and a shift to more intentional purchasing across all
ranges.
German online fashion retailer Zalando said on
Tuesday it had also benefitted from a decline in returns, though
it assumes the fall will be temporary.
"Looking forward, the consumer and economic outlook remains
uncertain and it is unclear how long the current favourable
shopping behaviour will persist," ASOS said.
Last month ASOS said it would repay the money it claimed
under Britain's scheme to furlough workers during the crisis.
In April it raised 247 million pounds in new equity to shore
up its finances.
($1 = 0.7668 pounds)
(Reporting by James Davey; editing by Kate Holton and Sarah
Young)
Next (NXT)
ASOS (ASC)