ASOS has revealed widening losses after half-year gross sales plunged by practically a fifth because it presses forward with “crucial motion” to show the enterprise round, together with the appointment of a brand new CFO.
The retailer posted underlying pre-tax losses of £120 million for the six months to three March in opposition to losses of £87.4 million a yr in the past.
Like-for-like gross sales fell 18% on an adjusted foundation within the first half and ASOS confirmed it nonetheless expects gross sales to fall by as much as 15% over the total yr.
It stated underlying earnings in FY24-25 are set to be “considerably” increased than the earlier two years because it cuts prices and slashes inventory ranges.
Chief government Jose Antonio Ramos Calamonte stated 2023-24 “is about taking the required motion to get us to that path”.
ASOS blamed the gross sales drop on overhaul efforts, having minimize its inventory consumption by about 30% year-on-year to “proper dimension” inventory ranges and likewise clearing a backlog of previous objects.
It stated it was forward of plans to cut back inventory and is aiming for additional clearance gross sales over the ultimate six months of the monetary yr.
Ramos Calamonte stated: “At first of this yr we defined that 2023-24 can be a yr of continued transformation for ASOS as we take the required actions to ship a extra worthwhile and money generative enterprise.
“ASOS is turning into a sooner and extra agile enterprise, and we’re reiterating our steerage for the total yr as we lay the foundations for sustainably worthwhile progress in 2024-25 and past.”
The retailer additionally introduced the appointment of a brand new Chief Monetary Officer – Dave Murray, who most not too long ago held the identical place at MatchesFashion and can tackle the put up on 29 April 2024.
He takes over from Sean Glithero, who holds the function on an interim foundation.
The enterprise has been on a mission to cut back its inventory and prices and enhance its profitability.
However its woes have been compounded as many UK quick trend retailers have suffered a troublesome yr or two amid important stress on family budgets, in addition to powerful competitors from world rivals equivalent to Shein and Temu and on-line marketplaces.
Ramos Calamonte stated: “Our progress during the last six months means we will really feel assured that from 2024-25 we’ll have the correct degree of newness to excite our prospects once more.
“Whereas we will be happy with what we’ve achieved up to now, there may be at all times extra to do.”
