UK-based retailer ASOS' gross margin at 40.3% in H1 FY24

Insights from ASOS's financial report for the first half of fiscal year 2024 (H1 FY24), including adjusted gross margin, revenue decline, and EBITDA.

Adjusted Gross Margin Decline

ASOS's adjusted gross margin declined to 40.3% in H1 FY24 from 42.9% in H1 FY23, reflecting financial challenges in the retail sector.

Revenue Drop

ASOS experienced an 18% revenue drop to £1.49 billion in H1 FY24 compared to £1.83 billion in the previous year, indicating a significant decline in sales.

EBITDA Loss

ASOS reported a negative EBITDA of minus £16.3 million in H1 FY24, a reversal from the positive £4.6 million in H1 FY23, signaling financial challenges and operational losses.

Adjusted Earnings Before Interest and Taxes (EBIT)

ASOS's adjusted EBIT worsened, deepening to a loss of £98.1 million in H1 FY24 from a loss of £69.4 million in the previous year, reflecting increased financial strain.

Net Debt Improvement

ASOS reported an improvement in net debt to £348.8 million in H1 FY24 from £431.7 million in the previous year, indicating progress in managing financial obligations.

Transformation Strategy

ASOS CEO Jose Antonio Ramos Calamonte outlines the company's transformation strategy for FY24, focusing on product relevance, customer relationships, and cost reduction under the Back to Fashion initiative.

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