ASOS PLC (AIM:ASC) posted a loss in the first half and said the full effects of the cost-of-living crisis have yet to hit.
However, the online fashion retailer said its guidance for the year remains unchanged and expects sales growth to accelerate in the second half as supply chain constraints ease.
"We've entered the second half of the year well placed, and believe that our stock position, with increased product availability and newness, will stand us in good stead," a statement said.
But there is a "more challenging external environment since guidance was provided in October 2021" and "greater risk in H2 than normal as the full impact of recent inflationary pressure on consumers and the potential impact on discretionary spend are yet to be felt," the statement added.
For the six months to February 28, loss before tax was £15.8mln against a profit of £106.4mln previoulsy as supply chain constraints, reduced stock availability and Coronavirus (COVID-19) restrictions hit.
Revenues grew by 1% to over £2bn, below its growth target of 15%-20% outlined last year and short of its long term target of £7bn per year.
The group said sales growth should be suypported by an easing in comparatives and increased holiday and event demand.
Improved marketing investment and lead times will also support sales growth.