Despite posting a £16.3 million adjusted EBITDA loss for the 26 weeks to 3rd March, compared to a £4.6 million profit a year earlier, ASOS (LSE: ASC) shares climbed 8% in early Wednesday trading.
The company attributed the setback to fierce competition from rapidly expanding Chinese fast-fashion rival Shein and a build-up of excess stock.
However, ASOS maintained its forecast for positive full-year adjusted EBITDA, with sales expected to decline 5-15%. CEO José Antonio Ramos Calamonte stated the company is “laying the foundations for sustainably profitable growth in full-year 2025 and beyond” by accelerating new collection launches and offloading surplus inventory.
In a bid to regain profitability, ASOS announced the appointment of Dave Murray, a former executive at Sainsbury’s and Amazon, as its new Chief Financial Officer. Murray’s retail and e-commerce expertise is anticipated to aid ASOS’s turnaround efforts.
The online fashion retailer has grappled with stagnant growth since the pandemic. Over the past year, ASOS shares have plummeted over 50% reflecting the company’s ongoing struggles.
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