Online fashion group ASOS PLC (LSE:ASC) was firmly stuck in the mud this financial year, with group-wide sales falling by 16% to £2.9 billion.
This was a worse-than-expected result compared to the 15% sales decline previously guided by the group.
On an adjusted (EBITDA) basis, earnings of £80.1 million matched the consensus expectation, representing a 36% year-on-year decline.
Losses before tax surged by 80% to £126 million.
ASOS is in the midst of a fundamental operational shift following the disposal of its Topshop and Topman brands, but any turnaround is expected to be a slow slog for shareholders.
For chief executive José Antonio Ramos Calamonte, the year was about reducing stock overhang.
A “disciplined revision of everything we do” has necessitated “clearing through old stock (and) changing our product model to ensure we can bring our customers the best, most relevant product and exiting unprofitable activities to invest into areas that matter most to our core customers”.
Calamonte conceded that large-scale discounting “has not made for attractive financial results over the last two years”, while shareholders hoping for an optimistic outlook on growth may have been disappointed.
“From experience, we know that exactly when that results in growth in revenue is not something we should try to manage… We will do things in the right way and we're going to be patient,” he said.
On a positive note, sales of new clothing ranges increased by 24% year on year in the last three months of the reporting period.
ASOS expects improved margins in the year ahead and is guiding between £130 million and £150 million in 2025 EBITDA.