Asos, the online fashion giant warns about rising costs after the announcement of the resignation of the CEO Nick Beighton
Asos, one of Britain’s largest online clothing retailers, following the boom in online shopping during the Covid pandemic with revenues up a fifth and profits up a quarter in the year through the end of August, expects a more than 30% decline in earnings in fiscal year 2022. All due to a number of factors, including higher logistics costs, supply chain disruptions and ongoing Brexit. Specifically, adjusted pre-tax profits are expected to range between £ 110 million and £ 140 million, compared to £ 193.6 million in fiscal 202, which ended August 31.
There sales growth in fiscal year 2022 is expected to be between 10% and 15%, with revenue growth in the “mid-single digits” first half. Asos expects industry-wide supply chain pressures to continue throughout the first half, resulting in longer lead times and limited supply from some of the partner brands. The company also expects higher inbound and outbound transportation costs, and an increase in labor costs.
At the same time as the publication of the results financed for the fiscal year 2021, which closed with revenues of approximately 3.9 billion pounds and an adjusted EBITDA of approximately 343 million pounds, the company announced that the CEO Nick Beighton and the board of directors agreed that “it is the right time for him to step down as CEO after 12 years with the company“, of which you are as CEO. While the search for a successor is ongoing, current CFO Mat Dunn will take on the additional role of chief operating officer and lead the business on a daily basis, while Katy Mecklenburgh, currently Director of Group Finance , will become Interim Chief Financial Officer. Meanwhile, on the London Stock Exchange the stock of Asos is positioned at 2,628.3 with a drop of 5.49% (it fell to 2,300). A further fallback towards the support area is expected. at 2,402.5 and later at 2,176.8.