ASOS sees sales plummet in lockdown

Fashion is one of the losers in the pandemic e-commerce economic landscape. Online fashion giant ASOS has seen sales fall by 20%-25% in the last month.

In a message to investors the company said that all its warehouses remain open but are operating at a lower capacity with effective social distancing measures undertaken.

Chief executive Nick Beighton said: ”Along with other businesses, we have been significantly impacted by the COVID-19 outbreak. Our first priority was to quickly put in place the necessary measures to ensure the health and wellbeing of our people.

“Since then, we have been focused on keeping our business delivering for customers whilst implementing a series of actions to mitigate the sales impact we have been experiencing.”

Supply levels from China have returned to normal and ASOS don’t expect a material impact on its stock.

“Our supply chain remains flexible,” said Beighton, “with most ASOS Design product on lead times of 4-12 weeks, which will allow us to remain agile in the face of changing levels of consumer demand.”