Asos presents its financial results for the year, highlighting key financial challenges.
- Group revenue fell by 18%, accompanied by a 34% increase in operating losses, totalling £331.9m.
- The adjusted group revenue stood at £2.9bn, showing a year-on-year decline of 16%.
- A notable cash flow improvement of £37.7m was achieved, representing a significant turnaround from the previous year.
- Stock levels were strategically reduced by around 50%, aligning with business transitions.
In its latest financial disclosure, Asos has outlined its struggles over the past year, marked by an 18% reduction in group revenue, equating to a £331.9m operating loss, which is a 34% year-on-year increase. Despite these setbacks, the company has implemented measures to strengthen its financial position, notably improving cash flow by £37.7m—a significant improvement of £250.7m compared to the previous year.
The fashion retailer’s adjusted group revenue was reported at £2.9bn, reflecting a 16% decline year on year. In light of these financial results, Asos has emphasised its focus on operational efficiency and strategic stock management, having reduced stock levels by approximately 50% since 2022. This reduction was part of a disciplined management approach and involved a considerable write-down of around £100m to transition to a new commercial model by the end of 2024.
José Antonio Ramos Calamonte, Chief Executive of Asos, expressed optimism despite the challenging results. He highlighted the company’s strengthened balance sheet, courtesy of the Topshop Topman joint venture and recent refinancing activities. Calamonte asserted that Asos’ product line is currently at its strongest, boasting an appealing level of newness that captures customer interest. He noted the company’s success in boosting profitability through a concentrated effort on operational improvements.
Customer engagement remains a priority for Asos, with aspirations to enrich the shopping experience for its 20 million customers. Over the past quarter, Asos experienced a 24% increase in new product sales, demonstrating the effectiveness of its refined strategies. Calamonte conveyed enthusiasm for the progress achieved and expressed anticipation for the company’s forthcoming endeavours.
Asos remains committed to navigating its financial hurdles while leveraging strategic improvements to enhance customer experiences and operational efficacy.
