RE: Asos25 Mar 2022 18:39
Yep the high inflation is having an adverse affect on the customers incomes. If pay was keeping up... would not be so much of a problem. The amount spent on clothes will fall in the UK I reckon as a whole for some months.
Also will be some strain on supply costs too for ASOS and question is how much of that can they pass on.
I note they have unsold stock which would have been sourced a bit cheaper. I note 807 million of inventory as at August 21 so that could be a good thing if its decent stuff. They could flog some of that.
Some will be putting off clothes purchases for a while. That said though, ASOS is a cheap clothes retailers and so the customers who would normally choose to buy more expensive could flock to ASOS.
So ... a challenge yes but I ASOS will be ok.