Home / Knowledge / News / Apparel/Garments / UK online fashion retailer ASOS's profits slide 14%
UK online fashion retailer ASOS's profits slide 14%
27
Oct '14
In the fiscal year ending August 31, 2014, UK online fashion retailer – ASOS reported a 14 percent year-on-year drop in pre-tax profits to £47 million.

ASOS said profits were impacted from the huge fire at its Barnsley depot in North England, launching services in China, optional investments and the impact of a strong pound.

Retail sales reached £955 million in the reporting period, a surge of 27 percent from the previous fiscal year.

The surge in retail sales were helped by UK retail sales zooming 35 percent from a year earlier and global sales rising slower at 22 percent.

However, retail gross margin fell 210 bps from 50.8 percent in the previous fiscal year to 48.7 percent in the fiscal year under review, from the impact of a price cut by ASOS.

According to analysts, margins were hit as overseas customers were not willing to fork out higher prices, which ASOS had implemented after strengthening of the pound, leading the retailer to then cut prices.

Earlier, the fashion retailer has said it would reduce prices to reverse the slowdown in overseas markets sales growth.

ASOS now expects profits to be similar in the fiscal year ending August 31, 2015, as it continues to make investments in international pricing, warehousing and technology infrastructure.

The fashion retailer also forecasts sales growth to slow down by 15-20 percent in the new fiscal year from the year ending August 2014.

The UK retailer is however optimistic that it can touch its target of £2.5 billion in sales by 2020.

“We are still an investment story in an opportunity that is ahead of us. Unfortunately, the year we just completed, was the most challenging in the last 15 years,” CEO Nick Robertson said.

"We are in a period of major investment that comes at a short term cost, but the medium-term benefits will be significant," he added.

ASOS also informed that it was promoting its CFO Nick Beighton to COO with immediate effect. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Ghana makes tax stamp compulsory on imported textiles

Textiles | On 27th May 2018

Ghana makes tax stamp compulsory on imported textiles

To curb illegal imports, Ghanaian authorities will put a tax stamp on ...

Courtesy: Vishal Mega Mart

Apparel/Garments | On 27th May 2018

Partners Group, Kedaara Capital taking over VMM

Partners Group, a private markets investment manager, and Kedaara...

Courtesy: Deckers

Apparel/Garments | On 27th May 2018

Deckers Brands sales soar 8.4% in Q4FY18

Deckers Brands, a global leader in designing, marketing and...

Interviews View All

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search