Asos and Boohoo stick to US closures despite Trump tariffs
Asos is to continue with its plan to close its distribution centre in Georgia, USA, and serve the country from Yorkshire despite the imposition of President Donald Trump’s tariffs.
At the start of the year, the fast-fashion group announced plans to close its US base in another effort to boost profitability and streamline operations.
The move will see US customers served from Asos’ automated UK fulfilment centre in Barnsley, and through a “smaller, more flexible local US site”.
The plans were drawn up before Trump introduced a 10 per cent tariff in UK exports to the US last week.
In response to City PM, Asos confirmed that it will continue to close its Atlanta warehouse in the second half of the year.
In January, Asos said it expected a £10m to £20m benefit to pre-tax earnings from 2026, but noted a £190m impairment this year.
Shares in Asos slumped from 293p to 248p in the aftermath of Trump’s tariff announcement.
However, its shares have started to rebound modestly today. The shares added around two per cent.
Boohoo joins Asos in not reversing US closures
The move by Asos in January mirrored a similar decision made by Boohoo in September last year.
The retailer confirmed it would stop supplying US customers from its distribution centre in Pennsylvania.
Orders will instead be fulfilled from the fast-fashion retailer’s automated distribution centre in Sheffield, significantly reducing costs and allowing the firm to market a much wider range of products in the US.
Boohoo has told City PM it will not reverse its decision.
Shares in Boohoo – which recently announced plans to be known as Debenhams Group – also slumped in the wake of Trump’s tariff announcement – from 26.4p to 21.7p.