LONDON (Reuters) – ASOS goes public on Wednesday as the British online fashion retailer’s continued forecast and appointment of a new finance chief eclipsed its first-half net loss as the group faces competition of the Chinese giant Shein and excess stocks.
The group appointed former Sainsburys and Amazon executive Dave Murray as chief financial officer on Wednesday, hoping his experience in retail and e-commerce could help the company return to profitability.
The company, which has struggled to recover since the pandemic, presented the current financial year as a period of transition, during which it will accelerate the launch of new collections and get rid of an accumulation of excess inventory which has weighed on sales. profits.
ASOS faces growing competition from fast fashion giant Shein, which is expanding rapidly in Europe, thanks to low prices and its quick response to changing trends.
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In the first half, ASOS recorded an adjusted Ebitda loss of 16.3 million pounds (19.12 million euros), compared to a profit of 4.6 million pounds for the same period last year.
For the full year, the group confirmed its forecast of positive adjusted EBITDA for sales which should be down by 5% to 15%.
“ASOS is becoming a faster, more agile business, and we reiterate our full-year guidance as we lay the foundation for sustainably profitable growth for the full year 2025 and beyond “, said José Antonio Ramos Calamonte, Managing Director of ASOS.
On the London Stock Exchange, around 09:05 GMT, ASOS shares rose 2.8%, after having climbed more than 11% earlier in the session.
“ASOS is making significant progress in its strategic efforts, which prepare the company for growth in the fourth quarter of fiscal year 2024,” Berenberg analysts praised in a note, adding that the group’s management is ahead on its inventory reduction objective for the whole year.
(Reporting Sarah Young; French version Federica Mileo and Augustin Turpin, edited by Blandine Hénault)
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