Online fashion specialist Asos has reported that it has met strategic turnaround targets and can now ‘focus on taking actions to delight customers’.
Although Asos’ full-year results showed a fall in sales and profits, the online retailer said it had achieved objectives such as clearing stock and embedding a new commercial model. With “strong foundations now in place”, Asos is set to push on to the next phase of improvement.
In the financial year that just started, Asos expects adjusted EBITDA to climb by at least 60% to between £130m and £150m. That compares to adjusted EBITDA of £80.1m in the year just ended on September 1, when adjusted group revenue fell 16% to £2.89bn. Statutory pre-tax losses rose to £379.3m from £296.7m last year.
Asos chief executive José Antonio Ramos Calamonte said: “We achieved our key priorities for the year, significantly reducing our inventory position, while generating positive adjusted EBITDA and free cash flow.
“Following the year end, we further strengthened our balance sheet with our Topshop Topman joint venture and our refinancing. Our product is now in the strongest position it has been in years, with the right level of newness to excite customers, and we have fundamentally improved our profitability through a relentless focus on operational efficiency.
“With these solid foundations in place, we can focus on delivering experiences that delight our 20 million customers. There is much work to do, but we have already seen our efforts rewarded with new product sales increasing 24% year on year over the last three months. I am energised by the progress we have made so far and excited for the next phase of our journey.”
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