ASOS names new CFO as losses widen and sales fall

ASOS has revealed widening losses after half-year sales plunged by nearly a fifth as it presses ahead with "necessary action" to turn the business around, including the appointment of a new CFO.

The retailer posted underlying pre-tax losses of £120 million for the six months to 3 March against losses of £87.4 million a year ago.

Like-for-like sales fell 18% on an adjusted basis in the first half and ASOS confirmed it still expects sales to fall by up to 15% over the full year.

It said underlying earnings in FY24-25 are set to be "significantly" higher than the previous two years as it cuts costs and slashes stock levels.

Chief executive Jose Antonio Ramos Calamonte said 2023-24 "is about taking the necessary action to get us to that path".

ASOS blamed the sales drop on overhaul efforts, having cut its stock intake by about 30% year-on-year to "right size" stock levels and also clearing a backlog of old items.

It said it was ahead of plans to reduce stock and is aiming for further clearance sales over the final six months of the financial year.

Ramos Calamonte said: "At the beginning of this year we explained that 2023-24 would be a year of continued transformation for ASOS as we take the necessary actions to deliver a more profitable and cash generative business.

"ASOS is becoming a faster and more agile business, and we are reiterating our guidance for the full year as we lay the foundations for sustainably profitable growth in 2024-25 and beyond."

The retailer also announced the appointment of a new Chief Financial Officer – Dave Murray, who most recently held the same position at MatchesFashion and will take on the post on 29 April 2024.

He takes over from Sean Glithero, who holds the role on an interim basis.

Ramos Calamonte added: "Our progress over the last six months means we can feel confident that from 2024-25 we’ll have the right level of newness to excite our customers again.

"While we can be proud of what we’ve achieved so far, there is always more to do."