ASOS has posted a loss – its first in 20 years – as sales for the year to August 31st, rose just 1 per cent to reach £3.936.5m. This resulted in an operating loss of £9.8m and a loss before tax of £31.9m.
The revenue slowdown came during a particularly tough trading year during which the business heavily discounted substantial over-stocks. It says it will now be writing off over £130m of stock. ASOS had also been impacted, like most of its competitors, by heavy levels of returns.
The business had appointed Jose Antonio Calamonte as CEO in June 2022 alongside Jorgen Lindemann as chair. Since ths time the business has focused on developing its collaborations with Adidas and Reebok who are using its Partner Fulfils programme as well as with Nike. Topshop and Topman have been relaunched, doubling sales for the acquired brands.
Jose Antonio Calatamonte said in a statement that the short-term focus was on building resilience with the longer-term strategy being to generate sustainable growth. An extensive review of its capital and resource allocation was underway along with customer acquisition channels and end-to-end operations.
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