Fashion Retailer ASOS Sinks After Warning on 2024 Sales 

A smartphone with ASOS app, a keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. (Reuters)
A smartphone with ASOS app, a keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. (Reuters)
TT

Fashion Retailer ASOS Sinks After Warning on 2024 Sales 

A smartphone with ASOS app, a keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. (Reuters)
A smartphone with ASOS app, a keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. (Reuters)

Online fashion retailer ASOS warned sales would fall again in 2024, hitting its shares, though the British company said its ongoing turnaround meant growth would return the following year.

ASOS said on Wednesday sales would fall between 5% and 15% in its fiscal year to September 2024, behind forecasts and sending its shares down 10%, continuing a difficult run for the stock which has shed 50% over the last six months.

Shore Capital called the sales downgrade "worrying".

ASOS Chief Executive José Antonio Ramos Calamonte is a year into his plan to revive the company, once a poster child for the online fashion revolution which slumped post-pandemic due to fierce competition and a problem with excess inventory.

Casting 2024 as a transition year, ASOS said that historic excess stock would continue to drag on sales and profitability, but for 2025 it expected a return to growth with a core earnings margin around pre-COVID levels.

Most clothes retailers have suffered from Britain's wet summer and then an unseasonably warm September which hit sales of autumnal clothing, but some have fared better than others.

Next on Wednesday reported better-than-expected third-quarter sales, while, like ASOS, online fashion retailer Boohoo cut its outlook in October.

Calamonte said he was encouraged by sales of fashion lines sold under ASOS's new commercial model and the company would be well set by 2025, once it was free from the hangover of its previous set-up and old stock.

The CEO said he was "very happy" with ASOS's financial position amid media speculation it could sell the Topshop brand it has owned since 2021 to boost its balance sheet.

"We don't comment on rumours and speculation," he told reporters.

For its last financial year, the 53 weeks to Sept. 3, ASOS reported an adjusted loss before interest and tax of 29 million pounds versus a 44 million pounds profit the year before.



Hugo Boss Cuts Full Year Sales Guidance over Weaker Demand in China, UK

FILE PHOTO: Mens clothing are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
FILE PHOTO: Mens clothing are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
TT

Hugo Boss Cuts Full Year Sales Guidance over Weaker Demand in China, UK

FILE PHOTO: Mens clothing are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo
FILE PHOTO: Mens clothing are on display at the Boss store in London, Britain, May 30, 2024. REUTERS/Chris J. Ratcliffe/File Photo

German fashion house Hugo Boss on Monday cut its sales guidance for the year to a range of between 4.20 billion euros ($4.58 billion) to 4.35 billion euros over weakening global consumer demand especially in markets like China and the UK.
The company earlier expected sales for the year at around 4.30 billion to 4.45 billion euros.
Hugo Boss said that it expects operating profit (EBIT) to be around 350 million euros to 430 million euros, down from its previously communicated guidance of around 430 million euros to 475 million euros.
This is the second time this year that Hugo Boss has cut its sales guidance.
The company had previously also flagged in its first quarter results weaker demand in China and concerns about the US consumer sentiment ahead of presidential elections, causing shares to slump to their lowest since 2022.
The German fashion house also said that its preliminary second-quarter sales declined by 1% to 1.02 billion euros. Its operating profit (EBIT) in the period amounted to 70 million euros on a preliminary basis.
The premium apparel brand has been on an expansion mission, and has been increasing marketing spend and opening 102 new points of sale in 2023, but its shares have fallen this year as it warned of slower sales growth.
World's biggest watchmaker Swatch reported a steep drop in first half sales and earnings earlier on Monday as demand for luxury goods in China remained weak, Burberry also issued a profit warning and scrapped its dividend payment for the year as well.