Asos has reported a loss of US $ 459 million for the fiscal year ending 1st September, marking an increase from the previous year’s loss of US $ 359 million with sales dropping by 18 per cent to US $ 3.5 billion. Being at a loss, Asos continues its focus on sustainable profit growth with a loyalty program launch.
CEO Jose Antonio Ramos Calamonte remains optimistic and said, ”Delivering the appropriate goods to clients at the appropriate moment is our new business strategy,” adding that these improvements are expected to drive gross margins back toward 50 per cent in the medium term.
The company’s strategic changes included a 50 per cent reduction in inventory, enhancing product freshness and increasing customer demand. In recent months, Asos has seen a 24 per cent year-on-year increase in new product sales, with around 80 per cent of its stock now under six months old.
Asos also reported an adjusted EBITDA of US $ 97 million, at the upper end of expectations. The retailer is committed to building on its “Back to Fashion” strategy, introducing more brand partners, expanding its agile “test and react” model to 20 per cent of its own-brand sales and launching a standalone site for Topshop. Calamonte emphasised Asos’s focus on delivering improved customer experiences and operational efficiencies.
Looking forward, Asos is confident in achieving significant profit improvements in the first half of fiscal 2025. “We accomplished our main goals for the year, which included cutting inventory dramatically and generating positive adjusted EBITDA and free cash flow,” Calamonte concluded, expressing confidence in the company’s growth trajectory as it pursues its recovery goals.
