* Says can't mitigate all post-Brexit tariffs
* Retail sales up 23% in four months to Dec. 31
* Expects full year 2020-21 profit at top end of forecasts
(Adds detail, CEO comments, shares)
By James Davey
LONDON, Jan 13 (Reuters) - British online fashion retailer
ASOS on Wednesday reported strong Christmas trading and
raised its profit outlook but said post-Brexit tariffs would
cost it 15 million pounds ($20.5 million) in its 2020-21 year.
UK retailers, including Marks & Spencer, have
complained of issues re-exporting goods to European Union
countries since the end of the Brexit transition period on Dec.
31, with tariffs imposed on items not made in the UK.
ASOS has been able to continue selling products on its
European websites, largely without incurring tariffs because
most are shipped from its warehouse in Berlin.
But even ASOS has not been able to mitigate the impact of
all the tariffs.
"We've not been able to get every product to go direct to
Berlin in every single circumstance," Chief Executive Nick
Beighton told Reuters, noting ASOS deals with 800 third party
brands as well as its own brand product.
"Some of the smaller brands have not been able to
re-structure to go direct to Berlin rather than Barnsley so
there's still some re-balancing that needs to be done," he said.
"Over the coming years as they grow we will work to mitigate
that cost impact."
Britain's Brexit trade deal was billed as preserving its
zero-tariff and zero-quota access to the bloc's single market.
"It isn't actually a no tariff deal," said Beighton.
ASOS, which sells fashion aimed at 20-somethings, said group
retail sales surpassed its expectations over the four months to
Dec. 31, rising 23%.
The group has traded through coronavirus lockdowns while
store-based rivals have had to close shops.
It also benefited from fewer products being returned by
shoppers during the crisis, as well as investment in product,
pricing and marketing.
ASOS forecast 2020-21 pretax profit at the top end of market
expectations.
Prior to its update they were in a range of 115 million
pounds to 170 million pounds ($157-233 million) versus 142.1
million pounds made in 2019-20.
Shares in ASOS were up 0.3% at 1219 GMT, extending
year-on-year gains to 56%.
($1 = 0.7318 pounds)
(Reporting by James Davey; editing by Estelle Shirbon, Jason
Neely and Bernadette Baum)
Marks & Spencer (MKS)
ASOS (ASC)