Firsthalf loss of 87.4 mln stg
Expects 39;low double digit39; sales decline in second half
Confident of return to profit in second half
Shares down 11

LONDON, May 10 Reuters ASOS, one of the pioneers of online fashion retailing, swung to a firsthalf loss, hit by a squeeze on household budgets and forecast a further drop in sales, sending its shares sharply lower.

The stock was down 11 on Wednesday, extending losses over the last year to 57, after the company forecast a worse than previously expected low doubledigit sales decline in its second half.

Sales fell 15 in its second quarter, with that trend continuing into March and April.

ASOS led by CEO José Antonio Ramos Calamonte announced an overhaul of its business model last October. His plan focuses on profitable sales rather than topline growth.

ASOS forecast secondhalf core earnings of 4060 million pounds 5076 million.

I am very confident of our return to sustainable profit and cash generation in the second half of the year and beyond, Ramos Calamonte said.

ASOS and rival Boohoo grew rapidly as 20somethings around the world snapped up their fast fashions, and demand surged again during the pandemic when high street rivals were closed.

But supply chain issues, higher product returns, competition from rivals like Shein and a costofliving crisis have weighed on their business models.

British households are currently contending with the highest inflation in western Europe, running at 10.1 in March.

The…