ASOS reveals cost of warehouse fire

FASHION retailer ASOS said the fire at its Yorkshire distribution site has caused it to lose between £25m and £30m in sales.

In a trading update for the three months ended August 31, Nick Robertson, CEO, said: “Due to the fire at our Barnsley distribution centre, we lost sales during the quarter of between £25m and £30m with a retail gross margin impact of c.200 basis points. After adjusting for insurance proceeds, we expect profit before tax for the year to be in line with market expectations.”

The fire happened in June and forced the retailer to stop taking orders until early hours of the next morning. Around 500 workers were evacuated from the site and ASOS said at the time that it estimated around 20% of the stock had been compromised by fire damage and the sprinkler systems. Around 70% of the £159m stock is held at Barnsley.

However, the retailer said sales have increased by 33% in the UK while its international business grew 6% or 14% in constant currency.

Robertson added: “In the new financial year we’ll make significant investments in our international pricing and proposition, as well as in our logistical infrastructure and technology platform. As a result, we expect profit before tax for the year to 31 August 2015 to be at a similar level to 2013/14.

“We remain focussed on the long-term opportunity for ASOS, with £2.5bn of sales as our next staging post.”

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