By Michael Susin
ASOS said that fourth-quarter revenue slipped but cost-savings measures supported the group’s profitability, while earnings are expected to come in at the bottom end of its guidance.
The online fashion retailer said on Tuesday that revenue for the quarter ended Sept. 3 fell 12%, while revenue for the year dropped 10%.
The company said the fall was in line with the guidance given a weak performance in July and August amid a deterioration in the U.K. clothing market.
Despite the fall in sales, the fourth quarter is anticipated to be profitable. The company reported that around 300 million pounds ($366.3 million) of profit improvement and cost savings have now been realised, in line with the annual guidance.
Adjusted gross margin–which strips out exceptional and other one-off items– for the second half of fiscal 2023 rose by around 150 basis points, missing the guidance of above 200 basis points.
The company added that earnings before interest and taxes for the second half is anticipated to come in at the bottom of the guided range of GBP40 million to GBP60 million, with free cash inflow in second half now expected to be around GBP60 million.
Write to Michael Susin at [email protected]
