Shares of ASOS (LSE:ASC) declined more than 3% on Friday after the British online fashion retailer disclosed it is in talks with German customs authorities regarding a legal dispute tied to import duty corrections from previous financial years.
ASOS explained it has been engaged in “ongoing discussions and legal processes” with German customs after assessments were issued on past import duties. The company stated it is formally challenging the claims and believes the maximum potential impact is not material, having reviewed more than 95% of the tens of thousands of customs declarations under review.
According to ASOS, this analysis — which aligns with World Trade Organization customs valuation methods and is backed by external legal counsel — places its additional liability at approximately €0.5 million ($585,900). The company emphasized it will continue to follow the appropriate legal channels.
The development comes after a report from the Financial Times indicated that German tax authorities are pursuing unpaid customs duties on shipments entering the country over several years.
ASOS previously warned that its annual revenue may miss market forecasts due to weak consumer spending, with profits expected to land at the lower end of guidance.
The retailer has been attempting to revitalize its fast-fashion image among younger shoppers while simultaneously cutting costs, as it faces mounting competition from Chinese rivals and trade-related headwinds in the U.S.
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