Asos falls £291m into the red as shoppers return to high street

‘Challenging trading backdrop' for online fashion retailer, with sales dropping more than expected

Asos has dived £291m into the red after sales slumped in what the online fashion retailer called a “challenging trading backdrop” as shoppers returned to physical high street stores and reined in spending on non-essentials.

Sales fell 8%, including a 10% drop in the UK, in the six months to 28 February – far worse than the 3% forecast by the City – as the company said it had deliberately shifted away from unprofitable sales and suffered from weak consumer demand and the December postal strikes.