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", with shoppers returning to physical high street stores and cutting spending on non-essentials.

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