Asos sales fall again on slow turnaround of fashion retailer

Asos has suffered a double-digit decline in sales in the first half as the fashion retailer was forced to heavily discount clothes to clear a build up of last season’s unsold stock.

The troubled online fashion retailer said Tuesday sales fell 18 per cent in the six months to March 3 as it “right sizes” its stock levels, which was broadly in line with guidance.

Asos has been struggling to revive its fortunes since the pandemic when a boom in online shopping receded and shoppers prioritised their spending on essentials like food and energy rather than fashion.

Chief executive Jose Antonio Ramos Calamonte, who has had the top job since June 2022, has previously said Asos needs to focus its efforts on getting the most relevant fashions to customers faster. Measures he has taken include mothballing a distribution centre in the UK, reducing its capacity and cutting costs.

The company’s share price has more than halved in the past year, and in November Asos said clearing stock in 2024 would be a drag on sales and profits.

Asos stuck to its outlook for the current fiscal year and still expects a sales decline of between 5 per cent and 15 per cent this year with positive adjusted earnings before interest, taxes, deprecation and amortisation.

Bloomberg