Fast fashion etailer Asos has reported a pre-tax loss of £270mn, as its adjusted first-half revenue falls by 18% to £1.5bn.
However, as part of its interim results for the 26 weeks to 03 March 2024, the retailer reiterated its full-year guidance of a revenues fall of between 5 to 15% alongside positive adjusted EBITDA.
As the retailer persists with its Back to Fashion strategy, it has worked to reduce stock, with £593mn worth of stock cleared in H1 (vs. FY24 objective of c.£600m). Approximately half of the stock reduction came from the clearance of stock over 12 months old.
José Antonio Ramos Calamonte, chief executive officer of Asos, said: “At the beginning of this year we explained that FY24 would be a year of continued transformation for Asos as we take the necessary actions to deliver a more profitable and cash generative business.
“Under our Back to Fashion strategy, we set out three priorities for the year – to offer the best and most relevant product, to strengthen our relationship with customers and to reduce our cost to serve. We have delivered on each of these in the first half of the year, including right-sizing our stock ahead of target to drive our best first half cash performance since 2017 and seeing excellent results in our Test & React model, which is growing at pace.
“Asos 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 FY25 and beyond.”
As well as releasing its interim results, Asos also announced the appointment of former Farfetch and Sainsbury’s executive Dave Murray as its new chief financial officer. Murray will join Asos on 29 April, succeeding Sean Glithero.
Furthermore, the retailer is working to improve its funnel marketing approach, with ‘ASOS Your Way’ and ‘ASOS Unreal Finds’ campaigns recently launched.
In February, the fast fashion retailer reintroduced its influencer programme. “Insiders” will work to support Asos marketing activity, such as becoming the face of campaigns delivered together with Asos brand partners, through Asos Media Group.
Hear from Elton Ollerhead, director – media group Asos, at a brand new retail media networks event, MediaX, on 11 June 2024 at the Cavendish Conference Centre, London.
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