Clothing & Shoes

Asos to detail growth plans following Beighton departure

The firm revealed that over the course of the next three to four years, it is targeting £7bn of sales

Asos is set to detail plans on how it will deliver on its recently announced medium-term targets to analysts and investors at its Capital Markets Day later today (10 November).   

Asos said it will reveal how it aims to build on its performance over the longer-term, and “provide greater detail and disclosure” on the business as it stands. 

In a presentation led by COO Mat Dunn, supported by Cliff Cohen (chief technology officer), Jose Antonio Ramos (chief commercial officer), Robert Birge (chief growth officer), and Vanessa Spence (commercial design and visual director), Asos said it will provide updates on:

  •  Its platform and capabilities enabling success – and how it will “complement its unique offer” of own and Partner Brands and leading customer proposition with the rollout of its Partner Fulfils model
  • Amplifying its “winning offer” –  enhanced by the recent acquisition of the Topshop brands, it will detail how its aims to expand the reach of its brands by continuing to “relentlessly improve” its fashion credentials.
  • Approach to international expansion

The firm also revealed that over the course of the next three to four years, it is targeting £7bn of sales, equating to 15-20% CAGR, and an EBIT margin of at least 4% underpinned by operational excellence initiatives of £50m to £100m. 

It added that key elements supporting this plan include adding over £1bn of revenue from own brands; the rollout and expansion of Partner Fulfils to represent 5% of GMV, and continued growth in the market-leading UK business whilst doubling the size of ASOS in the US and EU.

The news will be of particular interest to analysts and investors as Asos looks to steady the ship after it revealed the departure of its CEO Nick Beighton and warned on its 2022 profits last month. 

Dunn, who has stepped into the main leadership role following Beighton’s departure, said: “Today we are setting out the detail behind our plan to significantly increase Asos’ sales and profitability across the medium and longer-term. 

“Asos has a clear focus on meeting the needs of our consumers, and we have created a winning offer underpinned by our best-in-class customer experience. Our plan will ensure that we fully leverage our strong, scalable global platform to deliver our ambitions.”

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