ASOS, the online fashion retailer, is exploring potential bids for two major online beauty platforms as it continues to diversify its product range beyond clothing.

Sky News has learnt that ASOS is among the possible suitors for Cult Beauty and Feelunique, both of which have been put up for sale by their current owners.

City sources said that a formal bid from the London-listed group for either business remained an uncertain prospect, and that it was only expected to pursue one – if either – of the two targets.

If one did materialise, however, it would underline ASOS’s interest in expanding its presence in the beauty category after revealing in its half-year results in April that face and body product sales had grown by a record 114%.

Both Cult Beauty and Feelunique are working with advisers on sale processes as they seek to capitalise on growing demand from online customers during the coronavirus pandemic.

The two companies could command valuations in the low hundreds of millions of pounds, according to banking sources.

A takeover of either platform by ASOS would represent another important acquisition from the company following its £330m purchase of the TopShop and TopMan brands from the administrators to Arcadia Group earlier this year.

Industry insiders say that other strategic players in the online beauty sector, including THG Holdings, parent of The Hut Group, and German-based rival Zalando are also expected to evaluate offers for Cult Beauty and Feelunique.

Bids are understood to be due for both businesses in the coming weeks.

An ASOS spokeswoman declined to comment.

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