Asos promises to pay back furlough cash as sales spike in lockdown

Group sales rose by 10 per cent

(Getty Images)

Asos has said it will repay furlough cash to the government after its sales rose significantly during lockdown.

In a statement issued online, the company revealed that it’s able to make the payments thanks to ”a steady improvement in sales” during March, April, May and June.

The online retailer revealed that group sales had risen by 10 per cent to £1 billion in that time period.

“ASOS today announces trading for the four months to 30 June 2020,” the statement reads.

“Our main priority through the period was protecting the health and wellbeing of our people and our customers through the global pandemic and this was reflected in the strict social distancing protocols implemented and adhered to across our business.

“Within this context, we have continued to focus on trading dynamically and managing business performance rigorously.”

The statement goes on to refer to the time period of increased sales as “P3” and added that the rise was mainly due to a spike in loungewear sales.

“This is evident in our P3 performance, which shows a steady improvement in sales growth through the period alongside materially improved levels of profitability and cash generation,” it adds.

Asos’s chief executive Nick Beighton added that the company had “learnt a lot and adapted quickly” to lockdown and what it meant for its business.

He added: “While we remain cautious about the consumer impact of Covid-19 looking forward, we are on track to deliver strong year-on-year profit growth and to return to positive free cash flow for the full-year.”

The news comes after Asos was accused of “playing Russian Roulette with people’s lives” during lockdown due to claims that working conditions for staff were unsafe.

In April, the GMB union accused the online fashion retailer of failing to enforce social distancing despite government advice, claiming that up to 4,000 workers were at its warehouse in Grimethorpe, Barnsley.

“Workers report no social distancing measures, a complicated clocking in system which means large numbers of people gather in a small area, and hundreds of workers all breaking for lunch at the same time,” GMB Union said, referencing a survey it had carried out that allegedly suggested ASOS staff felt unsafe under the current working conditions.

Asos denied the claims, stating: “Since the lockdown, we have introduced a range of additional health and safety measures and the Environmental Health Officer, who visited the site on Friday, confirmed he was happy with the protocols we have in place.”