ASOS PLC (AIM:ASC) said it has agreed with Nick Beighton that he should step down as chief executive so a new person can lead its plan to reach £7bn annual revenue over the next four years.
Beighton has led the online fashion retailer for six years, having been 12 years at the company in total.
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“When I joined, there were fewer than 200 people and we had annual sales of around £220mln. I leave a business reporting turnover of almost £4bn, with more than 3,000 fantastic ASOS-ers delivering for 26mln customers in 200 markets around the world,” he commented.
While the board seeks a successor, chief financial officer Mat Dunn will take the additional role of chief operating officer, with director of group finance Katy Mecklenburgh becoming his interim replacement.
The AIM-listed firm has also appointed Ian Dyson as its new non-executive chair, replacing Adam Crozier, who previously announced plans to leave.
The board reshuffle also includes the addition of Jørgen Lindemann as a non-executive director. Lindemann is currently chair of Miinto, the Danish-based online fashion marketplace, and has recently stepped down from the board of competitor Zalando.
The new plan
ASOS has set out to deliver annual revenues of £7bn and an underlying earnings (EBIT) margin of at least 4% within three to four years.
The plan is to boost international growth, doubling the size of the combined US and Europe businesses, adding at least £1bn to ASOS's annual own-brand sales and launching a flexible fulfilment programme.
The current financial year is expected to see 10-15% revenue growth, as performance faces tough comparatives from last year and supply chain pressures.
The second half of the year is forecast to see an acceleration driven by stronger demand for ‘going out’ clothing, an easing of supply constraints and marketing investment to support international growth.
Profit before tax will drop to £110mln-£140mln as return rates go back to pre-pandemic levels and supply chain issues keep pushing up prices, alongside higher spend for marketing.
In the year to 31 August, revenue climbed 20% to £3.9bn, with adjusted profit before tax up 36% to £193mln. The period ended with cash of £199mln in the bank.
Trading was helped by lockdowns in the first half, while the ‘going out’ clothing categories saw demand rising in the second half of the year as restrictions were eased, even though it remains below pre-pandemic levels.