LONDON – Asos, the online fashion retailer, has claimed it is making progress in its turnaround efforts but this will not be enough to arrest declining revenues in its current financial year. The company’s share price fell by more than 6 per cent following the market update in which it forecasts that sales will decline by between 5 and 15 per cent. The share price of Asos has now fallen by 94 per cent in the past five years.
The company reported an annual loss of £29m for the year to 3 September, with revenues down a concerning 11 per cent.
This will be the company’s second year of falling sales while reporting annual losses. Asos has been seeking to turn around its fortunes under chief executive Jose Antonio Ramos Calamonte.
The company boss has been battling post-pandemic trading challenges along with the ongoing threat of Chinese e-commerce giant Shein which looms large over all popular fashion retailers right now.
Calamonte is currently overseeing a ‘Driving Change’ agenda and has achieved some successes on this front,. These include reducing stock levels by 30 per cent and increasing profit per order by 30 per cent.
The company also has the option of selling the Topshop Topman brand cash to assist in the short to medium term.
Asos has also announced it is closing its Lichfield warehouse, which only opened two years ago. This could cost several hundred jobs, Asos said.