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.
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
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
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