The full year statement from ASOS showed an adjusted pre-tax loss of £126m with LFL sales down by 16 per cent and total revenue coming in at slightly over £2.9bn. US sales had fallen by 28 per cent.
Commenting on ASOS’s full year results, Julie Palmer, Partner at Begbies Traynor, commented: “Today’s results from ASOS showcase quite how damaging the last 12 months have been for its performance as like-for-like revenue fall 16 per cent and losses continue to mount.
“Unfortunately, the highly competitive fashion retail market has not been kind to ASOS, which has seen its once prominent position toppled by low-cost, fast fashion players like Shein, as well as the growing popularity of the second-hand marketplaces like Vinted.”
“While the sector has clearly been encouraged by recent efforts to shore up the retailer’s financial position, most notably through the sale of Topshop into a JV, ASOS still has a lot more to do to allay concerns.”
Commenting on the full-year update, ASOS CEO Jose Antonio Ramos Calamonte said: “We achieved our key priorities for the year, significantly reducing our inventory position, while generating positive adjusted EBITDA and free cash flow. There is much work to do, but we have already seen our efforts rewarded with new product sales increasing 24 per cent YOY over the last three months.”
Elsewhere in the market, retailers are fighting hard to maintain and/or gain share of the consumer spend. Notably NEXT is succeeding, whereas for many the battle continues against the impact of the latest budget on all retail businesses in respect of the increased costs of employment. Now, with the additional drama surrounding the US election which is well underway, many businesses are understandably treading a very cautious path.
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