Asos chief: We’ll ‘reignite our brand heat’ to turn firm around
Asos said it expects sales to decline by up to 15 per cent in 2024 — but will swing back to pre-pandemic growth levels by the following year, as its chief looks to “reignite” the company’s “heat”.
According to its full-year results, revenue declined by 11 per cent to £3.5bn as customers scaled back on online shopping due to the cost of living crisis.
Earlier this year, its chief, José Antonio Ramos Calamonte, announced a slew of cost-cutting initiatives as part of its driving change initiative such as reducing its marketing outreach to customers who didn’t generate profitability.
The online retailer has also been trying to reduce the £1.1bn worth of stock it holds, and turning it into cash. Asos said today its stock levels have been cut by 30 per cent year-on-year.
Because of its reducing stock levels the company said it no longer requires as much warehouse space, so has made the decisions to mothball one its sites in Lichfield, Staffordshire.
Ramos Calamonte said: “As we improve our product and double-down on our unique style, we must reignite our brand heat and remind consumers we are first and foremost about fashion, not convenience or discounting.”
Despite a fall in earnings, Asos said it is on track to deliver revenue growth of pre-COVID levels by the 2025 financial year.
Ramos Calamonte said: “With strong foundations in place, FY24 will prioritise a shift ‘Back to Fashion’, leveraging Asos’ strengths to offer the best and most relevant product, styled the Asos way, with an exciting and seamless customer experience geared around fashion and excitement.”