UK's ASOS Sinks to First-half Loss

A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs
A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs
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UK's ASOS Sinks to First-half Loss

A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs
A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs

British online fashion retailer ASOS sunk to a first-half loss, as it battles competition from Chinese giant Shein and self-inflicted problems from excess stock, but it said it still expected an improvement over the year.
ASOS also named former Sainsburys and Amazon executive Dave Murray as its new chief financial officer on Wednesday, saying that his retail and e-commerce experience would help return the group to profitability, Reuters reported.
The company has struggled to grow since the pandemic and has cast its current financial year as a transition period, when it will speed up new collection launches and shed a build up of excess stock which has dragged on profits.
For the 26 weeks to March 3, ASOS posted an adjusted EBITDA loss of 16.3 million pounds ($20.3 million), compared to the 4.6 million pounds it made in the period last year.
Over the full-year period, it is sticking to a forecast for positive adjusted EBITDA on sales that are expected to be 5 to 15% lower.
"ASOS is becoming a faster and more agile business, and we are reiterating our guidance for the full year as we lay the foundations for sustainably profitable growth in full-year 2025 and beyond," CEO José Antonio Ramos Calamonte said.
ASOS is facing growing competition from fast-fashion giant Shein, which is expanding rapidly in Europe, offering low prices and benefiting from its speedy response to changing trends.



Birkenstock Raises Annual Revenue Forecast on Strong Footwear Demand

A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo
A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo
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Birkenstock Raises Annual Revenue Forecast on Strong Footwear Demand

A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo
A Birkenstock shoe shop is pictured in Dortmund August 27, 2013. REUTERS/Ina Fassbender (GERMANY - Tags: SOCIETY)/File Photo

Birkenstock raised its annual revenue forecast on Thursday, as the German sandal maker bets on benefits from full-price selling and strong demand for its closed-toe silhouettes and cork-based sandals.
Wholesale retailers are still stocking up on in-demand products like Birkenstock despite a wider effort to cut back on inventory due to waning demand for discretionary items such as footwear.
Demand for Birkenstock's sandals and shoes made of cork also got a boost from Margot Robbie donning a pair of pink Birkens in the movie "Barbie" last year.
The company now expects fiscal 2024 revenue between 1.77 billion euros ($1.91 billion) and 1.78 billion euros, compared with its prior forecast of 1.74 billion euros to 1.76 billion euros.
Birkenstock reported quarterly revenue of 481.2 million euros, compared with market expectations of 466.1 million euros, according to LSEG data.