(Reuters) – Online fashion retailer Asos climbed on the London Stock Exchange on Tuesday after improving its free cash flow in the first half, thanks to an increase in profitability and the liquidation of its inventory.
Asos shares rose 7.6% to 372.60 pence at 09:23 GMT.
The British group’s cash flow increased by around 240 million pounds (279.80 million euros) during the period.
Its turnover for the first half fell by around 18%, but largely in line with expectations.
Asos said it had moved ahead of its plan to improve stock efficiency and reduce inventory to around 600 million pounds by the end of the year.
The group, whose shares have fallen 14.8% since the start of the year, also reaffirmed its forecasts for the fiscal year, namely a “positive” adjusted Ebitda, a return to inventory levels of before the coronavirus pandemic and a reduction in net debt.
(Writing by Eva Mathews, Dagmarah Mackos for the French version, editing by Kate Entringer)
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