ASOS reports 50% profit surge as turnaround gathers pace
ASOS has reported an almost 50% increase in first half underlying profitability (adjusted EBITDA) as its turnaround strategy gathers pace.
The company said its 9% decline in gross merchandise value marked a sequential improvement in the period after progress was made in its core markets of the UK, US, Germany and France. Womenswear was one of the best performing categories.
Subscribe to TRBThe UK, ASOS’s largest major market, outperformed the rest of the group, with a gross merchandise value decline of 5%.
During the period, the company continued to maintain strong cost control, which meant there was a total fixed cost reduction of more than 10% in the period.
José Antonio Ramos Calamonte, chief executive of ASOS, said: “Our first half shows continued progress on executing our strategic priorities across Relevant Fashion Product, Inspirational Shopping Experience and an Efficient Operating Model.
“The result has been a c.50% YoY increase in underlying profitability. The enhancements we have made to the customer experience, including our revitalised app, are helping people to find not just items, but outfits, styled just for them.
“We are seeing improvements in new customer growth and strong performance in our womenswear business, both of which are encouraging lead indicators for sales growth.”
Looking ahead, ASOS has maintained its full year guidance for adjusted EBITDA of £150 million to £180 million.
Calamonte said: “With an accelerated cadence of initiatives still to come this year, we are well positioned to deliver further improvements for customers and the business as our focus remains on sustainable, profitable growth.”
