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Asos has hailed signs of a turnaround after it trimmed its losses and grew the number of new customers for the first time in nearly five years.
While sales fell 14 per cent to £1.1billion over the six months to 1 March, adjusted operating losses at the online fashion retailer narrowed to £18.3million from £39.6million.
Chief executive José Antonio Ramos Calamonte said there was 'significant progress and momentum' in the group's turnaround efforts.
He said Asos had not yet seen any impact on consumer confidence amid the Iran war, pointing to a collaboration with Adidas that sold out in three days this week.
The group had already taken ‘proactive actions to help mitigate inflationary impacts and supply chain issues' arising from the conflict.
And Ramos Calamonte said Asos was already ‘ahead of the curve’ as it has moved its supply chain closer to its delivery markets, including sourcing its products for the UK from Turkey and Morocco.
Fast fashion fight: Asos says it is trying to attract new customers with trendy designs, rather than cheap prices.
Shares fell 1.5 per cent and are down more than 95 per cent since their Covid-19 pandemic peak.
Online fashion retailers have struggled since then, weighed down by waning demand, growing costs and greater competition from the likes of Chinese industry giant Shein.
Asos has tried to stem the decline by ridding itself of excess stock and clamping down on excessive returns, including steps to ban customers from its platform.
Ramos Calamonte said that historically there had been certain consumers visiting Asos’ ‘looking for continuous promotion’, who may have been put off now. Active customers fell 9 per cent to 16.5million over the first half.
But he pointed to new customer growth of 9 per cent in March - the first month of growth since September 2021 - as proof that its 'exciting' products were 'resonating with consumers'.
He pointed to animal print and check as leading trends, while activewear is also proving popular with shoppers.
Despite attempts to strike an upbeat tone, 'Asos is still fighting for survival,' said Mark Crouch, market analyst at eToro. 'While this update suggests the retailer is stabilising, it remains far from thriving.'
Separately, Asos said it had kick-started a process to pursue a refund for the £7million it paid after being hit with Donald Trump’s tariffs last year.
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