ASOS Widens Pretax Loss, Continues With Recovery Plan

Dow Jones11-05

By Andrea Figueras

ASOS reported a widened pretax loss for fiscal 2024 as it continues to pursue a growth recovery plan amid a competitive environment where fast-fashion players such as Shein, Temu and Vinted are pushing the market.

The London-listed online fashion retailer said Tuesday that its pretax loss widened to 379.3 million pounds ($491.5 million) for the period ended Sep. 1, which compares with a loss of 296.7 million pounds in the prior year. Full-year revenue dropped 18% to 2.905 billion pounds.

"Asos has shifted its focus from rapid sales growth to profitability, reducing stock and emphasizing products with higher contributions," Yanmei Tang, analyst at Third Bridge, said.

The company said its stock clearance was complete and that foundations for a more agile and profitable business are now in place.

For fiscal 2025, the company projects an improvement in gross margin of at least 300 basis points to more than 46%, and adjusted Ebitda growth of at least 60% to a range of 130 million to 150 million pounds.

The group anticipates revenue within the company-compiled consensus range of a 9% decline to 6% increase. ASOS is confident in achieving profit improvements in the first half as well as the full year, regardless of revenue levels.

"Our core focus remains sustainable, profitable growth," it said. In the medium term, the group continues to expect revenue growth and an adjusted Ebitda margin of around 8%.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

November 05, 2024 03:09 ET (08:09 GMT)

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

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