Asos reports slump in sales but set to meet guidance

Source: Mintel 17-04-2024

For the 26 weeks to 3 March 2024, Asos saw a 18% decline in sales, while its adjusted group revenue fell year-on-year to £1.5 billion. For the same period, its loss before tax was £270 million, up from £290 million for the same period last year. Its UK sales fell 16% year-on-year against a “difficult consumer backdrop” due to economic uncertainty affecting younger customers. Asos said it is seeing “strong progress” on its Back to Fashion strategic priorities to make Asos “faster, more agile and more profitable” as it delivered its strongest cash performance since 2017 at £240 million.

Its full-year guidance is unchanged as it is “committed to accelerating to an 8% EBITDA margin in the mid-term.” It expects to see sales decline between 5% and 15% for the full year, but a return to growth in the final quarter.