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Billionaire Sutherland landowner, Anders Holch Povlsen, sees fashion company register big profits despite Covid-19 pandemic's impact


By Mike Merritt

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Anders Holch Povlsen.
Anders Holch Povlsen.

Scotland's richest man – who owns a large swathe of Sutherland – has got a lot richer after his company recorded massive profits in the pandemic.

Danish billionaire Anders Holch Povlsen is the largest stakeholder of online fashion giant Asos.

Asos said that the pandemic forced it to "rip up the playbook" as its young customers came to terms with being cooped up at home.

Chief executive Nick Beighton said its 20-something core market normally bought clothes for going out.

But the company's swift "pivot" to casual clothing paid off, with surging sales, profits and customer numbers.

Asos added one and a half million customers in the past six months, giving it a total of 24.9 million.

Sales rose 24 per cent in the six months to February 28, with profits jumping to £106.4m, up from £30.1m a year earlier.

Mr Beighton told a conference call that under lockdown, there had been a greater emphasis on activewear, casual wear and beauty products.

Asos had "quickly pivoted the customer offer to meet demand" in those areas, he said, with jersey tops and casual bottoms proving strong sellers.

Mr Beighton said Asos was expecting a "shift back to occasion wear" as lockdown restrictions eased. This would begin with daywear, then evening wear, he said.

"During that time, flexibility will be vital for us," he added.

Asos said its integration of Topshop and other Arcadia brands, which Asos bought in February, was "progressing to plan".

As well as Topshop, Asos also acquired the Topman, Miss Selfridge and HIIT brands in a £295m deal, but not their network of about 70 shops.

The company said its latest "record results" had been driven by "exceptional execution".

In the UK, where Asos now has more than seven million customers, sales were particularly strong, climbing by 39 per cent.

As an online-only business, Asos is one of the few retailers that have benefited from lockdown.

In the company's results statement, Mr Beighton said he was "delighted" with the "exceptional first-half performance".

"Looking ahead, while we are mindful of the short-term uncertainty and potential economic consequences of the continuing pandemic, we are confident in the momentum we have built and excited about delivering on our ambition of being the number one destination for fashion-loving 20-somethings."

Asos said it was still cautious about the outlook in the short term, because of uncertain economic prospects for its youthful target group.

Risks included possible further Covid-19 peaks, as well as the timetable for the easing of global pandemic restrictions.

However, it added that it was "well positioned to capture demand for event-led product when lifestyles normalise".

Asos’ biggest shareholder is Mr Povlsen, who now holds a stake of more than £1.3 billion. He also owns stakes in Zalando, and Klarna, as well as eight fashion brands through his retail empire Bestseller including Jack & Jones.

Mr Povlsen (48), through his company Wildland Ltd, owns 13 estates in Scotland totalling over 220,000 acres – making him the largest private landowner north of the border.

Those estates include sites in Sutherland where he is opposing the proposed £17.3m spaceport near his land – and has recently won a judicial review of Highland Council's planning permission.

He is also Denmark's richest man with an estimated fortune, according to Forbes, worth £9.8bn – though estimates of his wealth vary. He inherited a Danish fashion empire from his parents at 28.

It is believed Mr Povlsen's Scottish conservation company, Wildland Ltd, has now invested more than £150m in Scottish estates and land.

Related news: Anders Holch Povlsen's legal challenge against Space Hub Sutherland granted


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