ASOS posts third quarter profit
ASOS has returned to profitability in its third quarter as its “Driving Change” turnaround strategy delivers results.
In the three months to 31 May, EBIT rose by more than £20 million year-on-year despite revenue falling by an expected 11%, or 14% at constant currency, to £858.9 million in the period.
While UK total sales dropped by 14%, sales in the EU, US and the rest of the world declined by 4%, 15% and 13% respectively.
ASOS said its profit per order is now up over 30% in the year-to-date due to actions taken to improve profitability of underperforming brands and geographies.
Meanwhile the number of active customers fell to 0.8 million following the retailer’s continued focus on improving the profitability of sales over the pursuit of growth “at any cost”.
José Antonio Ramos Calamonte, ASOS chief executive, said: “We continue to focus on making ASOS the best possible destination for our fashion-loving customers. At the same time, we are delivering on our plan to turn the business around: to right-size our stock; to generate cash; to reduce our net debt; and to structurally improve our profitability.”
ASOS said it will continue to focus on profitable sales and reducing inventory for the remainder of the current financial year. It also confirmed that it is on track to deliver adjusted EBIT guidance of £40 million to £60 million for the second half.
Calamonte added: “I am confident in the direction we are going, we have restored profitability in the period and made good progress in clearing through our inventory to generate cash.”
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