As its new business strategy starts to pay off, Asos’s first-half adjusted EBIDTA has significantly improved, rising to US $ 56.55 million from US $ 21.69 million a year earlier. In addition, the online fashion store revealed a reduced pre-tax loss for the six months ending 2nd March, coming in at US $ 321.33 million as opposed to a previous loss of US $ 359.25 million.
Asos reported that its sales trend progressed as anticipated, with annualising decreases in outdated inventory and optimised performance marketing driving a 13 per cent drop in adjusted group revenue to US $ 1.72 billion during the period.
The retailer credited a greater full-price mix and less markdown activity for the 500 bps increase in gross margin.
By rearranging its inventory position, changing how it purchases clothing, and putting a “unwavering” emphasis on operational efficiency, Asos has been trying to change its business during the past two years.
José Antonio Ramos Calamonte, the CEO of Asos, commented on the company’s half-year performance, saying that the emphasis on full-price sales, speed to market, and quality is being well received by customers. As a result, ASOS Design sales in the UK have increased by +9 per cent year over year, and there has been positive momentum with partner brands. Crucially, these accomplishments were made while preserving strict cost management and enhancing inventory health.
