Asos has warned that full-year profits will fall sharply as cash-strapped customers return more items to the online clothing retailer. The company said that while sales rose in the three months to the end of May, profit had been hit by "inflationary pressures on consumers". It is far below Asos's prediction in January when it said annual profit was set to reach between £110m and £140m, and a sharp decline from the previous financial year when it hit £193.6m. Asos said the higher rate of returns was adding to warehouse and delivery costs. It said profit would be impacted if it had to cut prices to shift goods. Asos's share price plunged by 15% to a 12-year low of 987.5p following the update. UK shoppers buy more clothes per person than those in any other country in Europe, according to MPs. And young people top that list of UK shoppers. A recent survey by environmental charity Hubbub found that more than two-fifths of 16 to 24-year-olds buy clothes online at least once a week, compared to 13% on average for other age groups.
