Topshop is to return to the high street via other retailersâ stores, its owner Asos has announced as it played down the impact of rapidly changing tariffs and tax rules on its US sales.
The UK online fashion specialist said it had already signed deals to sell Topshop clothing to a number of retail partners and was looking for more, but the first step to a more independent image for the brand would be the relaunch of a standalone Topshop.com website later this year.
No standalone stores or concessions in bigger stores are planned at present but the company said it had not ruled that out longer term.
âThe time has come to become much more present with consumers in the UK and globally, said José Antonio Ramos Calamonte, Asos chief executive.
His comments came as the company revealed sales continued to fall rapidly â down 13 percent to £1.3 billion ($1.7 billion) in the six months to March 2, while pre-tax losses narrowed to £241.5 million from £270 million a year before â amid hefty competition from rivals such as Chinaâs Shein and Temu.
Calamonte said the company was focusing on âdelivering valueâ for its customers in a âvolatile environmentâ amid rapidly changing plans for tariffs and tax breaks on imported goods in the US.
Sales in the US dived by 30 percent, which the company attributed to âmarket conditionsâ as well as action to reduce unprofitable sales. In the UK, sales fell by 6 percent as the number of website visits and orders dropped. However, full-price own-brand sales rose by 9 percent.
Calamonte said Asos would probably benefit if, as expected, the UK scrapped or reduced a tax break for products costing less than £135 sent direct to consumers from abroad, which has driven the growth of Shein and Temu. However, he added: âWe want to win by offering consumers the best possible product and thatâs where we put all our energy.â
The CEO said Asos, which sells goods worth about £300 million a year in the US, had âthe flexibility to react to whatever comesâ on tariffs, as its products were made in a number of countries including Turkey, Morocco, eastern Europe and even the UK, as well as China and the Asia-Pacific region.
âI feel confident we are well prepared to react to this challenge,â he said, adding that the group was âmonitoring the situation very closely as it is changing quite a lot.â
Asos products are not subject to import tariffs in the US because they benefit from a tax break for items worth less than $800 sent direct to consumers from abroad. That loophole will be closed for Chinese-made products from next week.
Calamonte said only 5 percent of the groupâs sales in the US was generated by products sourced in China. These were likely to face higher tariffs when rules changed, but that would not necessarily mean higher prices for US shoppers, he said. âWe adapt to the market we will not push prices we will follow the market.â
The Asos boss said there were no signs of Chinese-made products being dumped in the UK or Europe but Asos was ânot fighting the battle of being the cheapest in the market and we are not going to change that nowâ.
He added that the UK online fashion market could not get any more competitive than it already was. âSome companies are operating cheaper than us and we are still finding green shoots,â Calamonte said.
By Sarah Butler
Learn more:
Asos Cedes Topshop to Denmarkâs Bestseller for $178 Million
Asos is forming a joint venture with the familyâs Heartland A/S, which will pay £135 million ($178 million) for a 75 percent stake in the two brands the UK company acquired in 2021 from Philip Greenâs insolvent retail business as part of a £295 million deal.