Asos has revealed its financial outcomes for the full year, marking a significant downturn.
- The company experienced an 18% drop in group revenue, highlighting economic challenges.
- Operating losses increased by 34%, reaching £331.9 million, indicating financial strain.
- Despite losses, Asos reduced stock levels, showing discipline in management.
- New product performance offers hope, with a 24% sales increase noticed recently.
Asos has announced its financial results, which reflect a challenging year for the retail giant. The company reported a group revenue of £2.9 billion, marking an 18% decline compared to the prior year. This decline underscores the various economic pressures impacting the brand and the broader fashion industry.
Operating losses increased significantly, with Asos recording a 34% rise, bringing the total to £331.9 million. Losses before tax amounted to £379.3 million, compared to £296.7 million in the previous fiscal year. This substantial increase in losses highlights the financial difficulties faced by the company.
Despite these setbacks, Asos managed to end the year with a £37.7 million free cash flow, a notable £250.7 million improvement from the prior year. This improvement is attributed to disciplined stock management and a roughly £100 million write-down to transition fully to a new commercial model by the end of 2024.
Efforts to manage stock levels have been effective, with the company reducing its stock by approximately 50% since 2022, bringing the total to £520 million. This strategic move is part of Asos’s plan to streamline operations and enhance profitability.
José Antonio Ramos Calamonte, Asos’s Chief Executive, stated that the company’s product lineup is in its strongest position in years. He highlighted that with the focus on operational efficiency, Asos can now deliver customer experiences that are more exciting and engaging. As a result of these efforts, new product sales have increased by 24% over the past three months, providing a sense of optimism going forward.
Asos remains hopeful for the future despite financial challenges, thanks to improved stock management and promising new product sales.
