Asos posts profits in line with guidance as turnaround strategy pays off

Asos said it expects EBIT to be “around the bottom of the guided £40m to £60m range” for the three months ending September 3, 2023.

Sales declined 15% compared with the same time last year, which the retailer said was “in line with guidance” as it saw “a stronger start to the period followed by weaker performance in July and August amidst a deterioration in the UK clothing market”.

The retailer said despite a double-digit decline in sales it posted a profitable quarter that reflects “material improvements to core profitability and strong inventory management” under its ‘Driving Change’ turnaround plan.

Asos chief executive José Antonio Ramos Calamonte said: “Asos has delivered on the Driving Change agenda and as a consequence is a leaner and more resilient business 12 months after its launch.

“We have reduced our stock balance by c.30%, significantly improved the core profitability of the business and generated cash against a very challenging market backdrop.

“We continue to focus on bringing the best fashion and the most engaging proposition to our customers as we make progress on our journey to sustainably profitable and cash-generative growth.”