ASOS PLC (LSE:ASC) delivered a profit in line with reduced guidance as its new chief executive laid out his plans for the next 12 months.
Adjusted profit before tax came in at £22mln for the year ended 31 August 2022, down 89% on the previous year, in line with reduced guidance of earnings at the lower end of the £20mln-£60mln forecast range.
Additionally, it will write-off of £100mln-£130mln of stock, which will increase flexibility within the logistics operations and reduce costs.
The online fashion retailer said that to navigate the uncertainty over the next 12 months, it will focus on delivering four actions, comprising “renewing its commercial model and improving inventory management; simplifying and reducing its costs profile; ensuring a robust and flexible balance sheet; reinforcing the leadership team and refreshing the culture”.
“Today, I have set out a clear change agenda to strengthen ASOS over the next 12 months and reorient our business towards the future,” said chief executive José Antonio Ramos Calamonte.
In terms of outlook, the volatile market continued into September, making it difficult to predict patterns for the upcoming year against the macroeconomic backdrop.
Within the UK, its “core operation”, ASOS expects a decline in the apparel markets but remains confident in its ability to take share against that backdrop, according to the company's earnings statement.
ASOS swung to a net debt position of £152.9mlm, which adds to worries it could be further cash strapped after amending its revolving credit facility to ensure cash and committed facilities of over £650mln at year-end.
“On the basis of the actions I have set out today, the team and I will work resolutely to emerge from these turbulent times as a more resilient and agile business - all the time guided by our purpose, to give our customers the confidence to be whoever they want to be,” said Calamonte.