Asos warns on profits amid ‘significant increase’ in customer returns

Sharp share sell-off as retailer says inflation is giving customers second thoughts about purchases

Asos has warned that profits could slump to as little as 20m this year, down from over 190m last year, as cash-strapped customers hit by rising inflation return more items to the online fashion retailer.

The warning, which was given in an unscheduled trading update, prompted a sharp sell-off of Asos shares, which hit a 12-year low. The share price fell close to 8, compared with 59 in March 2021, when the company benefited from a surge in online shopping during the Covid-19 pandemic.