News that ASOS CEO Nick Beighton has stepped down rather put the firm’s results statement in the shade. But there’s no denying the company remains one of the most successful in fashion retail, even if growth is slowing.
Asos concluded a strong year with a four-month autumn and festive period that showed just how strong a business it is. Sales soared not just in the UK but globally and it expects higher profit as a result.
An update from Asos showed sales growth slowing in the EU and US due to logistics issues. But growth in the UK and RoW, plus an end in sight to its warehousing woes all suggest a bright future for the firm.
“Disappointing” was how Asos described its first half as pre-tax profits went into freefall (down 87%). While sales rose 14% for the six months to the end of February, the retail gross margin dropped 60bps.
Asos sales continue to rise in double-digit percentages in Q2, but also continued to rise at a slower rate than previously and that meant investor disappointment, with the firm’s shares falling 5% in early trading.
Fashion e-tail giant Asos is hosting an event in central London on Wednesday to “bring together brands and inspiring individuals to engage in some of the most important topics facing the fashion industry.”
Asos powered ahead in SS18 as the UK, US and EU markets all bought into its offer in large numbers. And full-price trading has continued strongly during July, apparently with no negative impact from the heatwave.
Asos is going from strength to strength with sales and profits both rising strongly. And product initiatives are paying off, while a new relationship with Estée Lauder should boost it in the beauty arena.