Fashion etailer Asos has reported an operating loss of £33.2mn for the full-year, with an 16% drop in group revenue.
While working through its Back to Fashion strategy, Asos has seen “sales of newness” increase 24% YoY over the past three months (July to September 2024).
The retailer believes its FY25 will be driven by a further increase in full-price sales, and as a result expects at least 300bps increase in gross margin to over 46% and adjusted EBITDA to increase by at least 60% to £130mn to £150mn.
José Antonio Ramos Calamonte, chief executive officer of Asos, said: “We achieved our key priorities for the year, significantly reducing our inventory position, while generating positive adjusted EBITDA and free cash flow. Following the year end, we further strengthened our balance sheet with our Topshop Topman joint venture and our refinancing.
“Our product is now in the strongest position it has been in years, with the right level of newness to excite customers, and we have fundamentally improved our profitability through a relentless focus on operational efficiency.
“With these solid foundations in place, we can focus on delivering experiences that delight our 20 million customers. There is much work to do, but we have already seen our efforts rewarded with new product sales increasing 24% YoY over the last three months. I am energised by the progress we have made so far and excited for the next phase of our journey.”
Learn more about Asos in the Global Fashion 2024 report, where the etailer is featured in a Key Player profile.
Asos is one of 11 in-depth company profiles in the report, which are designed to illustrate the findings with easy to read and share RetailX charts and graphics. Depop, Enjoei, GAP, H&M, Muji, Nike, Red Bubble, Target, Victoria’s Secret and Zozo Town are all covered.
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