ASOS posts decline in sales
ASOS has posted a decline in sales after experiencing volatile trading in the four months to 31 December.
Revenue fell by 4% in the period when Russia was excluded.
ASOS said the drop was broadly in line with expectations as a result of challenging trading conditions and the prioritisation of structural profitability improvements and cash generation.
UK sales fell by 8% after the retailer was impacted by Royal Mail strikes and disruption in the delivery market in December. This resulted in earlier cut-off dates for Christmas and New Year deliveries, and ASOS reduced marketing spend in response.
In contrast, EU sales grew by 6% with trading in the Netherlands and Ireland particularly strong.
Meanwhile sales in the US and rest of the world declined by 2% and 10% respectively.
In its trading statement, the retailer said it is continuing to expect a first half loss but insisted its transformation programme is on track.
José Antonio Ramos Calamonte, chief executive of ASOS, said: “We are undertaking necessary strategic and operational changes, with our focus shifting from prioritising top-line growth to building a more relevant and competitive fashion business with a disciplined approach to capital allocation and ROI. At the same time, we are working to reinforce our credibility as a leading destination for our fashion-loving customers.
“We have made good early progress against a number of measures to simplify the business, including re-positioning our inventory profile, reviewing our operational model in our top markets and reducing our cost base. While there is more to do, I am pleased by the progress made in this period and am confident in the direction we are going. We retain ample balance sheet flexibility and reiterate our expectations for FY23.”