Asos losses widen to £87m
Alongside these results Asos has listed 250,000 new ordinary shares of 3.5p listed on the London Stock Exchange with the admission expected to be effective on 11 May 2023
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Asos has revealed a loss before tax of £87.4m in its half-year results for the six months ended 28 February 2023.
Furthermore, the company also posted an 8% drop in revenues down to £1.8bn from £2bn in the same period last year.
The online retailer reported an adjusted EBIT loss of £69.4m down from an EBIT profit of £26.2m.
UK sales were down 10% YoY, European sales were flat, US sales down 7% and the rest of the world were down 12%.
The company stated that the variations in performance reflected regional differences in the economic backdrop as well as country-specific profit actions taken by the company in-line with its focus on profitability over top-line growth.
Alongside these results Asos has listed 250,000 new ordinary shares of 3.5p listed on the London Stock Exchange with the admission expected to be effective on 11 May 2023.
If there is no improvement to the external trading environment Asos’ expectations for H2 FY23 are an EBIT between £40-60m.
José Antonio Ramos Calamonte, CEO, said: “Our focus is on improving our core profitability, prioritising order economics over top-line growth and I am pleased with the strategic and rapid operational progress the business has made in the first half of the financial year, against some very challenging trading conditions.
“Thanks to the hard work and commitment of our teams, we have accelerated the roll-out of our new commercial model, delivered more than £100m of profit optimisation and cost saving initiatives, extended our financing facility and continued to build out our top team while remaining committed to our Fashion with Integrity agenda.”
He added: “Taken together, these measures will create a more sustainably profitable and cash generative business as we reinforce our position as a leading destination for our fashion-loving customers.
“While some of these changes have impacted short-term sales growth, there are many causes for optimism as we progress through the second half of the year. We are improving our gross margin run rate in the face of significant headwinds, are starting to see the benefits of a repositioned stock profile, and are taking action to reduce the proportion of our sales which are not profitable.”
