17th Oct 2025 14:09
(Alliance News) - London-based fast fashion firm Asos PLC has seen shares come under pressure as it revealed talks with German tax authorities over an import duty dispute.
The German tax authorities are reportedly seeking unpaid duties relating to customs declarations on Asos shipments crossing the German border over several years, which is thought could run into tens of millions, according to the Financial Times.
Shares in the retailer fell 4.9% to 227.72 pence each in afternoon trading on Friday, having dropped as much as 6% earlier in the session.
But Asos said it is disputing the assessments and believes the additional tax liability to be "immaterial", at around EUR500,000.
It said: "Asos Germany has been engaged in ongoing discussions and legal processes with the German customs authority following assessments relating to import duty corrections for prior financial periods."
The group added: "We have completed an extensive review of more than 95% of the tens of thousands of customs declarations in question.
"Based on this analysis, which is compliant with World Trade Organisation customs valuation methods and fully supported by external legal counsel, we are confident that the actual additional liability is around 500,000 euro.
"We continue to engage with the authorities and follow the relevant legal processes and are confident of a successful conclusion of the matter."
It marks the latest headache for Asos, which has suffered difficult trading due to intense competition from Chinese rivals, rising costs and tariffs.
The firm warned late last month that sales would be lower than expected as it said consumers were continuing to ease back on spending.
Asos said its revenues for the 2025 financial year were expected to be slightly below forecasts, which were for an 8.4% drop.
It said underlying earnings would also be at the lower end of its forecast range for between GBP130 million and GBP150 million.
Asos has been making significant changes to how the business is run in a bid to make it more profitable and cut down its cost base.
This has included reducing the total value of its inventory by more than 60% since the end of the 2022 financial year after accumulating a build-up of stock.
It has also made savings through efforts to reduce customer returns.
By Holly Williams, PA Business Editor
Press Association: Finance
source: PA
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