Online fashion firm Asos slumps to annual loss in 'incredibly challenging' economic backdrop

By Greg Wright
Published 19th Oct 2022, 08:12 BST
Updated 19th Oct 2022, 08:12 BST
Online fashion firm Asos has slumped to an annual loss and warned it will remain in the red over the first half of its new financial year amid turnaround efforts and an “incredibly challenging” economic backdrop

The group reported pre-tax losses of £31.9 million for the year to August 31 against profits of £177.1 million the previous year after tougher-than-expected trading in recent months. Rampant inflation has seen shoppers rein in their spending.

On an underlying basis, pre-tax profits slumped 89 per cent to £22 million.

Hide Ad
Hide Ad

Asos said trading has remained volatile since the year-end, with September showing only a “slight” improvement on a difficult August.

An overhaul being led by new chief executive Jose Antonio Ramos Calamonte will see the firm “right-size” its stock, but this is set to push it to a first-half loss as it launches discounts to shift clothes.

Asos chief executive Jose Antonio Ramos Calamonte said: “Against the backdrop of an incredibly challenging economic environment, this unique combination has enabled our business to deliver a resilient performance this financial year in the UK – but I know we as a company can achieve far more."