ASOS delays annual results to complete audit work

Online fashion giant ASOS (LSE: ASC) has postponed the release of its annual results by one week, citing the need for additional time to finalise audit procedures.

In an official statement issued after the close of trading on Tuesday, ASOS disclosed that it would now unveil its financial figures for the fiscal year 2023 on November 1. This delay, according to the company, is to facilitate its auditor, PricewaterhouseCoopers (PwC), in completing the planned testing. PwC has reassured ASOS’s board that the outstanding procedures are limited in scope.

ASOS has affirmed that its performance for the period ending September 3 remains consistent with the details shared in the post-close trading update on September 26. The company anticipates reporting a full-year adjusted group revenue of £3.54 billion. Additionally, the second-half adjusted earnings before interest and tax are projected to surpass £38 million, resulting in a full-year adjusted EBIT loss not exceeding £31 million.

Furthermore, ASOS expects a substantial reduction in inventory levels, estimating a decrease of approximately 30% from the preceding year. As of September 3, the company’s cash reserves and undrawn facilities total £428 million.

Accompanying the financial results, ASOS CEO Jose Antonio Ramos Calamonte will host a strategic update session. This event will feature brief presentations from senior management, offering a comprehensive overview of the company’s medium-term outlook.

The fashion retailer, once a shining star during the pandemic, has faced challenges in the post-lockdown era as the allure of online shopping diminished. In response, ASOS unveiled a turnaround plan in October 2022. This initiative aimed to enhance inventory management, curtail costs, and bolster the leadership team and organizational culture. The plan marked one of Calamonte’s initial strategies as the CEO of ASOS.

ASOS’s shares saw a 3.3% decline, trading at £3.88, in the late trading hours on Tuesday in London.