Asos FY losses widen but outlook upbeat
By Michele Maatouk
Date: Tuesday 05 Nov 2024
(Sharecast News) - Online fashion retailer Asos reported a widening of its full-year losses on Tuesday as revenue slumped but insisted that things were looking up after two years implementing its transformation plan.
In the year to 1 September, pre-tax losses widened to £379.3m from £296.7m a year earlier, with adjusted group revenue down 16% to £2.9bn.
Asos said sales were impacted by continued challenges in the market, including higher cost of living pressures, and the volume impact of profit initiatives taken in FY23 under its 'Driving Change' agenda, alongside new programmes implemented in the current financial period.
Nevertheless, Asos said its 'Back to Fashion' targets have been met and "foundations of more agile and profitable business" are now in place.
Chief executive José Antonio Ramos Calamonte 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."
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