The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — British online fashion retailer Asos said on Tuesday it was close to finalising a potential equity increase and extension to its debt facilities to ensure it can endure the coronavirus emergency.
The group, which sells fashion aimed at 20-somethings, has kept going during the national lockdown in line with government guidance that online retail can continue.
It said it had been monitoring the ongoing financial impact of Covid-19 on its business and had been evaluating a number of different scenarios.
The company has stress-tested its liquidity under these scenarios and was comfortable that, with mitigating actions, there was sufficient liquidity within its existing 350 million pounds ($431 million) facility.
ADVERTISEMENT
"Whilst the company's financial position remains robust, the duration and impact of the Covid-19 related crisis remains uncertain and Asos wants to ensure it can weather and exit the current trading environment in a position of strength," it said, adding that a further announcement would be made shortly.
The retailer is due to publish first-half results on Wednesday.
Asos said it performed well in the period with sales growth in excess of 20 percent and progress in cutting non-strategic costs.
This combined with a stronger performance than anticipated in the January and February sale period, had resulted in a "strong first-half profit and earnings before interest and tax (EBIT) margin."
Shares in ASOS closed up 34 percent, paring 2020 losses to 54 percent.
By James Davey; Editors: Stephen Addison and Jane Merriman
Brands are using them for design tasks, in their marketing, on their e-commerce sites and in augmented-reality experiences such as virtual try-on, with more applications still emerging.
Brands including LVMH’s Fred, TAG Heuer and Prada, whose lab-grown diamond supplier Snow speaks for the first time, have all unveiled products with man-made stones as they look to technology for new creative possibilities.
Social networks are being blamed for the worrying decline in young people’s mental health. Brands may not think about the matter much, but they’re part of the content stream that keeps them hooked.
After the bag initially proved popular with Gen-Z consumers, the brand used a mix of hard numbers and qualitative data – including “shopalongs” with young customers – to make the most of its accessory’s viral moment.