ASOS, which has announced the appointment of Dave Murray as its new CFO, has posted its trading results for the half year to 3rd March. Losses of £120m were reported along with a fall in revenues.
Dave Murray
The business was keen to point out that it had previously issued full-year guidance of a revenue drop of 5 per cent to 15 per cent as it progressed with its turnaround plan. It also pointed out that it had sold off 83 per cent of its autumn range against just 17 per cent at the same time last year. This formed part of its plan to reduce inventory levels.
In a market that has become much tougher with greater competition from China’s Shein and Temu, in addition to the heavy discounting tactics in play with its local competitors, many consider that ASOS is recovering comparatively well and that its plan is bearing fruit.
Jose Antonio Ramos Calamonte, ASOS CEO, commented: “As is becoming a faster and more agile business, and we are reiterating our guidance for the full year as we lay the foundations for sustainably profitable growth in full-year 2025 and beyond.”
The online retailer has also confirmed the appointment of Christine Cross as a non-executive director.
Commenting on ASOS’ Interim Results, Julie Palmer, Partner at Begbies Traynor, said: “ASOS has again reported a worrying decline in sales, falling 18 per cent in the last half, that is testament to the tumultuous backdrop bearing down on the retail sector and a retailer struggling to resonate with customers. If the fashion retailer can successfully tighten its inventory, which it has already made progress with, and align more closely with its customers’ evolving tastes and spending power, it may be able to find its footing when the backdrop improves”.
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