Asos to repay furlough money as lockdown gross sales rise

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Image copyright Getty Images Asos will repay money to the federal government it claimed for furloughing staff after its gross sales grew in lockdown.The on-line retailer stated that group gross sales elevated by 10% to £1bn within the 4 months to 30 June.The rise was pushed by consumers in worldwide markets, with gross sales within the UK dipping by 1%.It got here as luxurious trend model Burberry introduced a stoop in gross sales and 500 job cuts, and Dixons Carphone warned of weakening shopper spending. In its buying and selling replace, Asos stated that it might be returning money it acquired beneath the federal government’s furlough scheme after a “better than initially-expected full-year performance”.”This has been a tough time for all businesses, but we have remained focused on doing the right thing for our people,” Asos boss Nick Beighton stated. It didn’t verify what number of staff it had furloughed beneath the federal government’s job retention scheme, the place the federal government pays 80% of staff’ salaries as much as £2,500 monthly, or the price.
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UK retail gross sales fell by 1% to £329m within the interval, however worldwide gross sales, significantly in Europe, have been sturdy, up 17% to £654m.Mr Beighton added: “While we remain cautious about the consumer impact of Covid-19 looking forward, we are on track to deliver strong year-on-year profit growth.”‘Pandemic winner’Analysts credited the agency’s on-line infrastructure with the strong of set of outcomes. Julie Palmer, companion at Begbies Traynor, stated: “It’s clear that the online retailer is a pandemic winner. “However, with a deep recession looming, and the hopes of a V-shaped restoration seemingly dashed by yesterday’s financial progress figures Asos, in addition to the remainder of the retail sector, should put together for a squeeze on shopper spending. “This is where the current goes calm before the waters turn choppy.”Burberry cuts jobsOther retailers reported grim gross sales figures on Thursday, after they have been hit by the slowdown in shopper spending amid the coronavirus pandemic.Luxury British trend model Burberry noticed gross sales nearly halve within the three months to the top of June, together with a 75% drop in Europe and the Middle East. As a results of the stoop in gross sales, the corporate stated it might lower 500 jobs worldwide because it sought to make financial savings of £55m.About 150 workplace jobs are anticipated to go within the UK, with an additional 350 abroad. The move will have an effect on about 4% of its 3,500 staff within the UK, though it stated that retail and manufacturing jobs wouldn’t be affected. Image copyright Getty Images Richard Hunter, head of markets at Interactive Investor, stated: “Burberry is running hard to stand still at the moment, although there are some grounds for optimism.He pointed out that Asia, where the Covid-19 pandemic originated, being a key market for the firm was a “double-edged sword”.He said this “resulted in an early hit to gross sales however equally is now seeing some profit from a step by step enhancing backdrop.”Dixons Carphone warningDixons Carphone also warned that it expected a “weakening” in spending later this year.Although the electronics retailer reported a surge in online sales, profits in the 53 weeks to 2 May fell to £166m from £339m the year before.Dixons Carphone group chief executive Alex Baldock said: “Since the 12 months finish, all our electricals companies have continued to develop gross sales. “Where our stores have reopened we’ve performed well, while continuing to see strong online sales growth. That said, we expect a weakening of consumer spending later this year and are being cautious in our planning.”

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