ASOS Backs Guidance as Turnaround Plans Progresses

Dow Jones03-26

By Michael Susin

ASOS backed its fiscal 2024 guidance, supported by further progress in its turnaround plans despite reporting a fall in first-half sales.

The online fashion retailer on Tuesday said sales for the 26 weeks to March 3 declined by around 18%, in line with its expectations, mainly due to the phasing of actions taken in fiscal 2023 to boost profitability.

The company said it is making positive progress on implementing its 'back to fashion' strategy, which includes the clearance of aged stock and the transition to a new operating model by fiscal 2025.

The company said it closed the first half with a robust cash balance of more than 330 million pounds ($417 million), up by more than GBP20 million from the same period a year ago.

The company backed its targets for the year ending in September as it sees sales declining in a range of 5% to 15%. Adjusted earnings before interest, taxes, depreciation and amortization--which strips out exceptional and other one-off items--are expected to be positive, with positive cash generation and reduced net debt.

"ASOS is becoming a faster and more agile business, aided by the incredible work of our teams to speed up all of our processes to deliver the fashion, quality and prices that our customers want, when they want it... We have reconfirmed our guidance for fiscal 2024 as we lay the foundations for a more profitable, cash-generative business from fiscal 2025 and beyond," Chief Executive Jose Antonio Ramos Calamonte said.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

March 26, 2024 03:59 ET (07:59 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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