Asos PLC said sales continued to fall but the online retailer kept its faith in its full-year guidance.
Sales in the three months to 31 May 2023 fell 14% to £858mln, while sales in the year so far were down 9% to £2.69bn, according to a statement.
However, the beleaguered online retailer said the fall in sales reflects “deliberate actions on capital allocation to improve profitability”.
Asos said it returned to profitability in the third quarter, with adjusted earnings before interest and tax (EBIT) up more than £20mln year-on-year.
This was aided by roughly £200mln of profit optimisation and cost savings in the year to date, with £300mln of benefits targeted for the full year.
Profits per order grew by 30% in the nine months to 31 May compared to last year, driven by actions to improve the profitability of underperforming brands and geographies, it said.
“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,” said chief executive José Antonio Ramos Calamonte.
Looking ahead, Asos said it remains on track to build more than £400mln of cash and undrawn facilities over the course of the second half of the year, with further material cash generation and reduction in net debt into next year.
Asos’ recent £80mln equity raise and new £275mln long-term facility have provided it with increased "resilience and significant flexibility”.