Revenue of UK retailer ASOS at £3,549.5 mn in FY23

ASOS's active customer base experienced a 9 per cent YoY decline. This reduction was partially attributed to measures implemented by the firm to enhance profitability. Such strategies inevitably led to greater customer churn. Premier customer numbers further declined by 11 per cent YoY.

Despite the challenges, there was a silver lining with the average basket value (ABV) registering a 5 per cent uptick. The company noted that pricing increases more than counteracted the markdown investments utilised for clearing aged stock. As a result, the profit per order surged, reflecting a growth of over 30 per cent, the company said in a press release.

Geographically, sales figures varied across regions. The UK witnessed a 13 per cent decline, mirroring the challenging consumer environment plagued by high inflation and subdued sentiment. Sales in the EU saw a decrease of 4 per cent. US sales followed a similar downtrend as the UK, decreasing by 14 per cent, and the rest of the world (RoW) sales experienced a drop of 16 per cent.

“FY23 was a year of good progress for ASOS in a very challenging environment, and I am proud of what the business has achieved. We have reduced our stock balance by 30 per cent, significantly improved the core profitability of the business, strengthened our balance sheet, and refreshed our leadership team. Encouragingly, stock that was brought in under our new commercial model over the summer months has performed strongly and this gives us the confidence to accelerate the rollout of our new processes. As such, we are taking decisive action in FY24 to clear stock brought in under our old model while substantially improving our speed to market and investing in our brand, reminding our customers what we’re really about: fashion,” said Jose Antonio Ramos Calamonte, CEO.

Fibre2Fashion News Desk (DP)