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Asos CEO steps down amid profit warning

In a series of changes to the board, Mat Dunn, currently CFO, will take on the additional role of chief operating officer and lead the business on a day-to-day basis, while Katy Mecklenburgh, currently director of group finance, will become interim CFO

Asos has announced that Nick Beighton will step down as CEO of the business after 12 years, as the group warned that ongoing supply chain issues may hit its profit in FY22.

In a series of changes to the board, Mat Dunn, currently CFO, will take on the additional role of chief operating officer and lead the business on a day-to-day basis, while Katy Mecklenburgh, currently director of group finance, will become interim CFO.

The board changes follow the retailer’s results for the full-year ending 31 August 2021 which saw pre-tax profits grow to £177.1m from £142.1m the previous year.

Group revenues increased by 20% to £3.9bn compared with £3.26bn in 2020. The business also set out details of its “ambitious” plan to deliver annual revenues of £7bn and an EBIT margin of at least 4%, within three to four years.

It said this will be achieved by an “acceleration” of international growth, including doubling the size of the combined US and Europe businesses and adding at least £1bn to the group’s annual own-brand sales.

The group stated its outlook for FY22 expects profits to range between £110m and £140m, with a sales growth of only 10% to 15%, as industry-wide supply chain pressures are expected to continue throughout H1.

Dunn said: “We have also continued to invest in our platform and offer, including the successful acquisition and integration of the Topshop brands. This performance is based on the hard work and determination of all ASOS-ers and I want to thank them for everything they have done.

“Looking ahead, while our performance in the next 12 months is likely to be constrained by demand volatility and global supply chain and cost pressures, we are confident in our ability to capture the sizable opportunities ahead.”

Beighton added: “I leave a business reporting turnover of almost £4bn, with more than 3,000 fantastic Asos-ers delivering for 26 million customers in 200 markets around the world.

“I am particularly proud of the way in which we have led our industry on putting sustainability at the heart of everything we do with our Fashion with Integrity programme. I wish Mat and the rest of the team well for the next phase of the Asos journey.”

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