UK-based fashion retailer ASOS has reported that its revenue for the first half (H1) of the fiscal year 2022 (FY22) grew by 4% year-over-year on a constant currency basis.

For the 26 weeks to 28 February, the company’s revenue grew by 1% on a reported basis.

ASOS reported an adjusted profit before tax of £14.8m ($19.26m) and a loss before tax of £15.8m (20.56m).

The company’s gross margin also declined by 190 basis points due to a rise in clearance activity, increased freight costs and other factors.

ASOS COO and CFO Mat Dunn said: “ASOS has delivered an encouraging trading performance, against the continuing backdrop of significant volatility and disruption.

“The team has acted with determination and pace and is making good early progress on the strategic plan for the next phase of growth, as set out at our Capital Markets Day last year.

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“While much remains to be done, we have a clear plan for each of the three key pillars – our platform, consumer offer and international expansion – and are already seeing positive signs of progress across the business.

“We’re confident of the benefits these efforts will create and our continued ability to deliver.”

Despite increasing external challenges, ASOS has kept its second-half (H2) guidance unchanged and expects its sales growth to improve over the six-month period.

The retailer has also said it plans to increase marketing investment to help expedite its international sales.

Last month, ASOS joined several other fashion retailers in suspending its operations in Russia in response to the country’s invasion of Ukraine.

Dunn added: “We remain mindful of the potential impact on demand from the growing pressures on consumer spend and will continue to be responsive to any changes in market conditions as we progress the work started in the first half to deliver on our ambitions.”