UK retailer ASOS' revenue at £858.9 mn in Q3 FY23

The company's UK sales experienced a 14 per cent decrease to £370.3 million, while its total sales to the EU dropped by 4 per cent to £285.3 million, reflecting a more pronounced 7 per cent fall when considering currency fluctuations. The company’s US sales also exhibited a downturn, declining by 15 per cent (or 20 per cent on a currency-adjusted basis) to £121.2 million. Similarly, sales to the rest of the world dropped by 13 per cent, or 14 per cent when adjusted for currency, amounting to £83.9 million, ASOS said in a press release.

The retailer's third-quarter earnings before interest and tax (EBIT) rose over £20 million YoY, boosting the EBIT margin by 250 basis points. Consequently, ASOS remains on track to meet its adjusted EBIT guidance of £40 million to £60 million for the second half of the year.

The company highlighted that profit per order has seen a surge of over 30 per cent so far this year. This uptick is driven by targeted measures to enhance the profitability of underperforming brands and regions.

However, active customer count witnessed a slight decrease, down by 0.8 million from the 24.9 million reported at the end of the first half of the year.

"We continue to focus on making ASOS the best possible destination for our fashion-loving customers. At the same time, we are delivering on our plan to turn the business around: to right-size our stock; to generate cash; to reduce our net debt; and to structurally improve our profitability. I am confident in the direction we are going, we have restored profitability in the period and made good progress in clearing through our inventory to generate cash. We retain ample balance sheet flexibility and reiterate our expectations for improved profitability, cash generation and reduction in net debt in H2 FY23 and beyond," said Jose Antonio Ramos Calamonte, chief executive officer.

The company also managed to reduce its inventory by about 15 per cent compared to FY22, with 86 per cent of the stock being less than 12 months old.

Fibre2Fashion News Desk (DP)