ASOS Hit by Supply Chain Disruption, Volatile Christmas Demand

A model walks on an in-house catwalk at the ASOS headquarters in London April 1, 2014. REUTERS/Suzanne Plunkett/File Photo
A model walks on an in-house catwalk at the ASOS headquarters in London April 1, 2014. REUTERS/Suzanne Plunkett/File Photo
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ASOS Hit by Supply Chain Disruption, Volatile Christmas Demand

A model walks on an in-house catwalk at the ASOS headquarters in London April 1, 2014. REUTERS/Suzanne Plunkett/File Photo
A model walks on an in-house catwalk at the ASOS headquarters in London April 1, 2014. REUTERS/Suzanne Plunkett/File Photo

British online fashion retailer ASOS reiterated its already downgraded outlook on Thursday after supply chain constraints and volatile demand limited sales growth in its four months to Dec. 31 trading period.

It posted total sales growth of 5%, following a 22% rise in the year to end August, and said gross margin decreased by 400 basis points to 43.0% driven by a need to discount goods and higher freight costs.

For the full year it reiterated its outlook of revenue growth in the range of 10%-15% and adjusted profit before tax of 110 million pounds to 140 million pounds. That hit its shares when it was published in October, and would represent a more than 40% drop on the year before.

"ASOS has delivered a robust start to the year, in line with the guidance we set out at full-year results, despite challenging market conditions," Reuters quoted Chief Operating Officer Mat Dunn as saying.

ASOS, once a darling of the stockmarket, was hit by a difficult end to 2021, when it cut its annual profit forecast and parted ways with its CEO following supply chain pressures and a return by shoppers to pre-pandemic ways.

While shoppers often return partywear clothing and fashion, incurring a cost for the company, they retained the athleisure wear bought during the pandemic to use at home, giving the company a boost to its finances during lockdowns.

Its shares are down 56% this year, prior to Thursday's update, mirroring similar falls seen at rival Boohoo which has also been hit by high product return rates, disruption to international deliveries and inbound freight costs.

ASOS added that it intended to move to the LSE's main stock market, expected by the end of February.



Gucci Dreams of Magical Sunsets at Milan Fashion Week

 A model presents a creation from the Gucci Spring/Summer 2025 collection during Fashion Week in Milan, Italy, September 20, 2024. (Reuters)
A model presents a creation from the Gucci Spring/Summer 2025 collection during Fashion Week in Milan, Italy, September 20, 2024. (Reuters)
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Gucci Dreams of Magical Sunsets at Milan Fashion Week

 A model presents a creation from the Gucci Spring/Summer 2025 collection during Fashion Week in Milan, Italy, September 20, 2024. (Reuters)
A model presents a creation from the Gucci Spring/Summer 2025 collection during Fashion Week in Milan, Italy, September 20, 2024. (Reuters)

Gucci sought to recreate the magic of summer sunsets at Milan Fashion Week on Friday with a colorful line that at times nodded to the 1960s.

Creative director Sabato De Sarno began the show for his spring/summer 2025 collection, called “Casual grandeur”, with a tailored zipped jacket and floor-length trousers slit at the front bottom, opening up over sneakers.

Models wore draped or sleeveless dresses in various colors adorned with golden buckles as well as see-through lace frocks.

There were looks that mirrored 1960s styles with short A-line skirts, structured jackets and shorts. Long coats were worn over tank tops and long denim trousers. Some coats were adorned with sparkling fringes.

Models walked down a red catwalk with lighting ranging from white to warmer shades, nodding to the "moment the sun dives into the sea at the end of an August day", De Sarno said in show notes.

“It’s the moment we find ourselves. This collection is a tribute to those moments, and an invitation to stop, seek your own moment," he said, as the show drew Oscar winner Jessica Chastain and Italian tennis star and world No. 1 Jannik Sinner among celebrity guests.

Accessories included large summer hats, an array of handbags and footwear that varied from loafers and boots to platforms with transparent heels.

De Sarno's color palette included grey, brown, different shades of green, white, orange and red.

De Sarno, who presented his first Gucci show a year ago, has been resetting the Italian luxury brand with his sleek, pared-back creations since taking over from former designer Alessandro Michele, known for his eclectic styles.

“A year later, this collection shows an accomplished journey of construction,” De Sarno said.

Gucci is the largest brand at Kering where it accounts for half of the French luxury group’s sales.

In July, Kering reported a bigger-than-expected drop in second-quarter sales and forecast a weak second half, as the group works to re-energize Gucci while facing subdued demand from Chinese shoppers.