Online fashion giant Asos has posted a fall in sales over the festive period but said it is making progress on its turnaround. 

Jose Antonio Ramos Calamonte

José Antonio Ramos Calamonte said Asos has ‘made good early progress’ in its turnaround

Asos reported a 3% decline in revenue over the four months to December 31, which it said was in line with expectations.

Asos, which has been battling to adjust in a shifting market, said it expected its recovery strategy to start bearing fruit in the second half of 2023.

UK sales tumbled 8%, ”reflecting weak consumer sentiment”. The retailer observed: ”This was particularly significant in September, which was impacted by national newsflow, and December, which was affected by disruption in the delivery market. This resulted in earlier cut-off dates for Christmas and new year deliveries, and Asos reduced marketing spend in response. In addition, there was a strong comparative period in December 2021, as the omicron Covid variant boosted online retail.”

Sales in the EU rose 6%, US sales fell 2% and revenue in the rest of the world fell 10%.

Chief executive José Antonio Ramos Calamonte said: “We are undertaking necessary strategic and operational changes, with our focus shifting from prioritising top-line growth to building a more relevant and competitive fashion business with a disciplined approach to capital allocation and ROI. At the same time, we are working to reinforce our credibility as a leading destination for our fashion-loving customers.

“We have made good early progress against a number of measures to simplify the business, including repositioning our inventory profile, reviewing our operational model in our top markets and reducing our cost base. While there is more to do, I am pleased by the progress made in this period and am confident in the direction we are going. We retain ample balance sheet flexibility and reiterate our expectations for full-year 2023.”

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