ASOS Warns on Profit, CEO Beighton Steps Down

ASOS has parted company with Chief Executive Nick Beighton, as it warned that higher logistics costs and supply chain disruption could force 2022 profits to drop by more than 40%. (Reuters)
ASOS has parted company with Chief Executive Nick Beighton, as it warned that higher logistics costs and supply chain disruption could force 2022 profits to drop by more than 40%. (Reuters)
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ASOS Warns on Profit, CEO Beighton Steps Down

ASOS has parted company with Chief Executive Nick Beighton, as it warned that higher logistics costs and supply chain disruption could force 2022 profits to drop by more than 40%. (Reuters)
ASOS has parted company with Chief Executive Nick Beighton, as it warned that higher logistics costs and supply chain disruption could force 2022 profits to drop by more than 40%. (Reuters)

ASOS, the British online fashion retailer, has parted company with Chief Executive Nick Beighton, as it warned that higher logistics costs and supply chain disruption could force 2022 profits to drop by more than 40%.

The company said Beighton, who has been with ASOS for 12 years, including six as CEO, would step down with immediate effect, adding that it wanted new leadership to accelerate international growth.

The group's shares have fallen 42% this year.

It said a search had started for a successor. In the interim, finance chief Mat Dunn has taken on the additional role of chief operating officer and will lead the business on a day-to-day basis, while Katy Mecklenburgh, currently director of group finance, will become interim chief financial officer.

Beighton will remain available to the board until the end of 2021 to help with the handover.

ASOS also said that Ian Dyson, ASOS's senior independent non-executive director, will become chairman on Nov. 29, succeeding Adam Crozier, who is becoming chairman of BT.

Crozier said the management and board had spent time developing a new strategic plan to accelerate international growth.

"Key to that is ensuring that we have the right leadership in place for the next phase," he said.

The company reported a 36% rise in adjusted pre-tax profit to 193.6 million pounds ($265 million) for the year to end August after seeing "exceptional" demand in its home market.

Analysts at Jefferies said the mid-point of the new adjusted profit guidance for 2022, of 110 million to 140 million pounds, was 35% below the current consensus of 193 million pounds.

"Although many of the headwinds are understandable and, hopefully, transitory, we suspect investors will struggle to put much credibility on the mid-term targets," they said.



Shein Faces 150-mn-euro Fine in France

FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo/File Photo
FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo/File Photo
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Shein Faces 150-mn-euro Fine in France

FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo/File Photo
FILE PHOTO: A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo/File Photo

E-commerce giant Shein faces a possible 150-million-euro ($175-million) fine in France for failing to properly get consent to track users on the internet.

The regulator, the CNIL, faulted the fast-fashion retailer for using trackers called cookies that enable for targeted advertising to users without their approval as required in Europe, or for using a confusing method to get consent.

It also found during a 2023 inspection that when users refused the tracking cookies Shein continued to read information from them.

Given the firm has the technical and staff resources necessary to comply with the regulations its behavior was negligent, said CNIL.

Shein had recently complied with the regulations, it added.

A final decision on fining the fast-fashion giant should come within weeks.

Shein called the proposed amount of the fine "disproportionate", in a statement sent to AFP.

"Since August 2023 we have actively worked with the CNIL to ensure our compliance and respond to their queries," the China-founded firm said.

This additional possible fine from the CNIL follows a record 40 million-euro penalty it received last week from France's competition and anti-fraud office over "deceptive commercial practices" by misleading customers on price deals and on its environmental impact.