ASOS, which had delayed reporting its results for the year to 3rd September 2023, has shown a statutory loss before tax of £296.7m which is considerably higher than the £31.9m declared for 2021-22.
During the year revenue had fallen from the £3.94bn generated in 2021-22 to £3.55bn, clearly showing the competitive challenges in the market along with the impact of inflation on consumers’ ability to shop as frequently as they had done previously.
ASOS had taken action to reduce its stock levels by c.30 per cent and had increased its profit per order by over 30 per cent, presumably helped along by the culling of unprofitable customers and the shedding of low performing third party brands.
CEO Jose Antonio Ramos Calamonte said: “FY23 was a year of good progress for ASOS in a very challenging environment and I am proud of what the business has achieved. We have reduced our stock balance by c.30 per cent, significantly improved the core profitability of the business, strengthened our balance sheet, and refreshed our leadership team.
“Encouragingly, stock that was brought in under own new commercial model over the summer months has performed strongly and this gives us the confidence to accelerate the rollout of our new processes. As such, we are taking action in FY24 to clear stock brought in under our old model while substantially improving our speed to market and investing in our brand, reminding customers what we’re really about: fashion.”
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