ASOS reviews its business model after fall in annual profit

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LONDON (Reuters) – ASOS announced an overhaul of its business model on Wednesday after the economic crisis, combined with a series of operational problems, dented full-year profit in its staggered financial year.

The title ASOS took 12.2% at 08:40 GMT on the London Stock Exchange.

New chief executive José Antonio Ramos Calamonte will have to take care of international operations, particularly in the United States, improve the supply chain and find a way to re-engage its younger customers, the group said in a press release, while the ASOS stock has fallen 80% this year.

The British group reported an adjusted profit before tax of 22 million pounds (25.3 million euros) during the financial year ended August 31, 2022, in line with forecasts which were revised downwards on last month and down from the £193.6m made in 2020-21 during the pandemic.

The company added that it would post a loss in the first half as prices fell to sell off inventory, necessitating a non-cash write-down of 130 million pounds.

After benefiting from the pandemic and the surge in online shopping, ASOS and its rival Boohoo are suffering from falling consumption due to the rising cost of living.

However, according to ASOS, September showed a slight improvement over August, despite market volatility.

(Reporting James Davey; French version Elena Smirnova, editing by Kate Entringer)

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