![]() We have reduced our stock balance by c.30%, significantly improved the core profitability of the business, strengthened our balance sheet, and refreshed our leadership team. “FY23 was a year of good progress for ASOS in a very challenging environment and I am proud of what the business has achieved. Jos é Antonio Ramos Calamonte, Chief Executive Officer said: In FY25, we expect to return to growth with EBITDA margin around pre-COVID levels. Anticipate sales decline of 5% to 15% in FY24, with positive adjusted EBITDA and material cash generation driven by stock sell-through, further reducing net debt.Expect to exit FY24 with majority of stock operating on the new commercial model and inventory restored to pre-COVID levels, Test & React scaled to over 10% of own brand, and 200% growth in Partner Fulfils. Final cleansing of stock over FY24 will remain a drag on sales growth and profitability through the year.This will be supported by £30m incremental investment into marketing while maintaining an obsession with operational excellence and disciplined capital allocation. With strong foundations in place, FY24 will prioritise a shift ‘Back to Fashion’, leveraging ASOS’ strengths to offer the best and most relevant product, styled the ASOS way, with an exciting and seamless customer experience geared around fashion and excitement.Significant operational progress: 84% of the c.£1.1bn stock carried forward cleared through in the year, stock operating under the new commercial model in H2 delivered stronger sell-through, Test & React pilot for high-fashion product produced c.500 options with lead times of c.two weeks, Partner Fulfils scaled to 33 brands across six markets, and technology now in place to accelerate the rollout and provide ASOS Fulfilment Services on Direct to Consumer product.Executed on Driving Change agenda priorities: reduced stock levels by c.30%, increased profit per order 7 by over 30%, refinanced the balance sheet bringing stability with the removal of profit-based covenants, and refreshed the leadership team to bring new energy and expertise.FY23 in-line with guidance provided in our P4 trading update, with H2 adjusted EBIT up more than 100% year-on-year (‘YoY’) and FY23 free cashflow 6 up more than £125m YoY despite double-digit revenue decline, reflecting material improvements to core profitability and strong inventory management.1 November 2023 CLICK HERE TO READ THE FULL RNS ASOS plc Global Online Fashion Destination Final results for the period to 3 September 2023 Turnaround on-track, delivering on “Driving Change” objectives and readying for a profitable return to growth in FY25 Summary financial results
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