First half profit down 87
Excluding Russia, full year guidance maintained
Shares reverse early losses to trade up 2

LONDON, April 12 Reuters Supply chain snags hammered firsthalf profit at ASOS and the British online fashion retailer warned its expectations for a much better second half could be disrupted by surging inflation.

Shares in the company, which sells fastfashion aimed at 20somethings, dropped as much as 6 in early Tuesday trading after it reported an 87 plunge in firsthalf adjusted earnings.

However, they bounced back to last trade over 2 higher after it said stock levels heavily affected in recent months by industrywide supply chain problems were much improved.

ASOS, which had warned on fullyear profits in October when parting ways with then CEO Nick Beighton, said it was sticking with its latest annual guidance excluding the alreadyflagged impact of quitting Russia following the invasion of Ukraine.

But it cautioned there was a greater risk to forecasting that normal as the full impact of recent inflationary pressure on consumers was yet to be felt.

Chief operating officer Mat Dunn said he expected analysts to trim about 14 million pounds 18 million from fullyear profit guidance of 110140 million pounds, to take account of the withdrawal from Russia. ASOS made an adjusted profit of 193.6 million pounds in its 202021 financial year.

The company said its forecasts reflected an improved stock profile, the easing of comparative growth rates, the…