Asos has reported a significant decline in revenue, but maintains that its restructuring efforts have laid the groundwork for future growth.
The e-commerce behemoth posted an operating loss of £331.9m for the year ending 1 September 2024, an increase of £83.4m from a loss of £248.5m in 2023, as reported by .
Year on year, like-for-like revenue dropped by 16 per cent, from £3,538m to £2,896m. Adjusted EBITDA fell £44.4m to £80.1m, while its adjusted pre-tax loss expanded by £55.7m to £126m.
Despite these stark figures, Asos asserts that its lengthy restructuring process is now complete, with the "foundations of a more agile and profitable business now in place."
During this period, the company cut jobs, reduced inventory, sped up processes, refinanced hundreds of millions in debt, and sold its stake in Topshop into a joint venture. Asos, like many other businesses, has been grappling with weak demand and high inflation, despite a surge in online shopping during the pandemic.
However, Jose Antonio Ramos Calamonte, Asos's CEO, stated that the company is in "the strongest position it has been in years."
having achieved key priorities for the year, significantly reducing inventory while generating positive adjusted EBITDA and free cash flow.
"With these solid foundations in place, we can focus on delivering experiences that delight our 20 million customers. There is much work to do, but we have already seen our efforts rewarded with new product sales increasing 24 per cent year on year over the last three months."
Asos anticipates its revenue and gross margin to grow by approximately 50 per cent "in the mid-term" and an adjusted EBITDA margin of around eight per cent.
