Revenue fell by 3 per cent at ASOS for the four months to 31st December ’22, which says the business reflects challenging trading conditions which are being addressed in part by its Driving Change agenda.
UK sales had fallen by 8 per cent reflecting both cost of living impacts and delivery issues including the need for earlier cut off dates for Christmas and New Year orders. US sales fell by 2 per cent and ROW were down by 10 per cent. However, EU sales painted a brighter picture with sales up by 6 per cent with Ireland and The Netherlands particularly strong.
During the period the business had disposed of written off inventory and extended Parter Fulfils to 23 brands across the UK and Europe. This has enabled it to commence the wind down of three of its ancillary storage facilities and to optimise its Lichfield fulfilment centre to eliminate the additional costs that had been incurred with processing and fulfilling split orders. It will also cull 35 unprofitable brands from its platform in H1, 2023.
Asos will rationalise its office space to reflect a lower headcount.
CEO Jose Antonio Ramos Calamonte said: “We are undertaking necessary strategic and operational changes, with our focus shifting from prioritising top-line growth to building a more relevant and competitive fashion business with a disciplined approach to capital allocation and ROI. At the same time, we are working to reinforce our credibility as a leading destination for our fashion-loving customers.”
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