Fast fashion retailer Asos has blamed a drop in profits on supply chain issues caused by reduced stock availability.
The retailer blamed “industry-wide supply chain constraints” which impacted its stock availability, as well as ongoing pandemic restrictions, for the losses.
The fast fashion retailer saw a substantial profit loss in H1 2022, compared to the previous year; as the six months to 28th February 2021 saw the retailer make 112.9 million in adjusted profit before tax, while in the six months to 28th February 2022, adjusted profit before tax was just 14.8 million, a change of 87%.
The company also attributed losses to a £30.6 million which was spent on improving the company.
The company’s COO and CFO Matt Dunn said: The [company]has acted with determination and pace and is making good early progress on the strategic plan for the next phase of growth, as set out at our CMD last year.
“We remain mindful of the potential impact on demand from the growing pressures on consumer spend and will continue to be responsive to any changes in market conditions as we progress the work started in the first half to deliver on our ambitions.”
The company is set to lose a further £14 million after its decision to suspend sales in Russia on the 2nd March 2022.