Online fashion retailer ASOS has reported large losses after shoppers cut back on spending.
The firm, which owns Topshop, was in the red by £87.4million in the six months to the end of February, compared to profits of £14.8million in the same period a year ago.
It said trading had been "very challenging" with sales down 10% in the UK and 7% in the US.
But ASOS said it was confident it would return to profits in the next six months.
The group, which announced a major restructure in October last year, had previously said it expected to make losses - in part due to having to cut prices to clear stock.
ASOS and some of its rivals have been seen as the poster children for the shift to online shopping.
Pandemic
The company benefited during the pandemic as locked-down shoppers, mostly younger adults, splashed the cash online.
But with the reopening of High Street shops, plus the rising cost of living, spending power of customers has been hit.
Jose Antonio Ramos Calamonte, chief executive of ASOS, said that, despite the losses, he was pleased with the operational changes the company had made in the past six months in what he described as "some very challenging trading conditions".
Adam Vettese, an analyst at social investing network eToro, told the BBC: "Not so long ago, ASOS was seen as the future of retailing in this country, but it has been a long time since it has lived up to that tag.
“Ironically, online-only retailers such as ASOS and BooHoo were meant to be the final nail in the coffin for bricks and mortar retailers, but the High Street is fighting back post-pandemic," he added.
FTSE 100
The UK's top share index, the FTSE 100, was up 13 points at 7,755 shortly after opening this morning, following yesterday's 32-point loss.
Investors will be keeping a close eye on news from the Bank of England today.
The Bank is widely expected to raise the interest rate for a 12th consecutive time as it tries to stop prices rising so quickly. The rate is forecast to go up from 4.25% to 4.5%.
The central bank has been increasing interest rates since December 2021 to try to control inflation, which currently stands above 10%.
Brent crude futures were 0.22% higher at $76.58 a barrel earlier this morning.
Companies reporting today
- Full-year results: 3i Group
- Trading update: Balfour Beatty, ITV, Wood, Rolls Royce