- Online fashion retailer Asos said it expected its annual profit to be at the top end of market expectations, as it continued to grow sales through the pandemic.

Revenue for the 10 months through June rose 16% to £2.61bn, including a rise in the four months through June of 9%.

Asos said its gross margin had contracted by 70 basis points 'despite adverse product mix reflecting tight inventory management'.

It offered the positive profit guidance despite incurring material incremental Covid-19 costs.

'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,' chief executive Nick Beighton said.

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