×
312
Fashion Jobs
ADIDAS
Director - Finance fp&a Fsf
Permanent · CHENNAI
ADIDAS
Manager Digital Analytics - Product
Permanent · GURUGRAM
ADIDAS
Senior Technology Consultant
Permanent · GURUGRAM
RJCUBE STAFFING SOLUTIONS
Production Manager - Upholstery (Leather & Fabrics) For Greater Noida
Permanent · Greater Noida
RJCUBE STAFFING SOLUTIONS
qa/qc- Garments-Woven/Knits For Garments Buying House, Noida
Permanent · Noida
NIKE
Information Security Risk Analyst (Grc) – Cis
Permanent · Bengaluru
RJCUBE STAFFING SOLUTIONS
qa/qc- Garments (Jersey, Etc) For Garments Buying House, Noida
Permanent · Noida
ZEN TECHNO ENGINEERING PVT LTD.
Production Manager
Permanent · Pune
ADIDAS
Manager Buying & Planning Operations
Permanent · GURUGRAM
ADIDAS
Product Owner Data Foundations
Permanent · GURUGRAM
ADIDAS
Senior Product Owner
Permanent · GURUGRAM
ADIDAS
Product Owner
Permanent · GURUGRAM
CROCS
Associate Demand Planner
Permanent ·
CROCS
HR Manager
Permanent ·
BRIDGING TALENTS
Quality Control Manager ii Retail Fashion Brand ii Jaipur / Bangalore
Permanent · Bengaluru
ALLEGIS GROUP
Opening For Sales Manager - Chennai & Kolkata
Permanent · Chennai
IDFC FIRST BANK
Opening For Area Sales Manager - Corporate Salary Mumbai
Permanent · Mumbai
TATA AUTOCOMP
Opening For Production Head at Chinchwad Plant
Permanent · Pune
THE BANYAN HR CONSULTS
Regional Sales Manager For Women's Wear Garments CO For Delhi & Ncr
Permanent · National Capital Region
PEOPLE ALLIANCE WORKFORCE
Quality Manager / Quality Head - Garments Manufacturing Company
Permanent · National Capital Region
NIKE
Senior Technical Product Manager, ed&a – Tpmo
Permanent · Bengaluru
RANDSTAD
Area Sales Manager
Permanent · Gurugram
By
Reuters
Published
Apr 2, 2014
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

ASOS profit falls on expansion costs

By
Reuters
Published
Apr 2, 2014

LONDON, England- British online fashion retailer ASOS posted a 22 percent fall in first half profit, reflecting its move to step-up the pace of infrastructure investment to meet future demand.

The firm, whose celebrity fans include United States First Lady Michelle Obama and singer Rita Ora, said on Wednesday it made a pretax profit of 20.1 million pounds in the six months to February 28, down from 25.7 million pounds in the same period last year.

ASOS | Source: REUTERS


The outcome was in line with guidance issued on March 18 when ASOS warned that accelerated investment in warehousing in the UK and Germany to give the firm a sales capacity of 2.5 billion pounds, as well as start-up costs in China, would hit annual profit.

ASOS said the extra costs would be disproportionately borne in the first half, resulting in a likely first half/second half pretax profit split of 30 percent/70 percent.

At the time it guided to a full-year pretax profit of about 65 million pounds.

Shares in ASOS fell up to 22 percent on the day of the profit warning, though they later recovered to close down 8 percent.

They closed Tuesday at 5,154 pence, still up 54 percent over the past year and valuing the business at 4.3 billion pounds.

"This increased pace of investment has reduced our profitability in the period, but will deliver significantly increased capacity as well as efficiencies in the longer term," said Chief Executive Nick Robertson, who owns 9.3 percent of ASOS's equity.

"ASOS is not and has never been about the short-term; the scale of the global opportunity remains as exciting as ever," he added.

Half year revenue rose 34 percent to 481.7 million pounds, as the firm ended the period with 8.2 million active customers, up 36 percent. Retail gross margin increased 60 basis points.

© Thomson Reuters 2023 All rights reserved.