ASOS boss resigns when fast fashion retailer warns about Reuters profits

© Reuters. File Photo: This illustrated photo, taken on October 13, 2020, shows a smartphone with an ASOS app, keyboard, and shopping cart in front of the displayed ASOS logo. REUTERS / Dado Ruvic / Illustration // File Photo

James Davy

London (Reuters)-UK online fashion retailer ASOS warned on Monday that supply chain pressure and consumers returning to pre-pandemic action could reduce 2022 profits by more than 40%. I broke up with CEO Nick Beyton.

The stock price of ASOS (LON :), which sells fast fashion aimed at people in their twenties, fell 12.2% in 1014 GMT and fell to 49% this year.

Beighton has been with ASOS for 12 years, six of whom were CEOs. The company said his immediate resignation would allow him to find new leadership that would accelerate international growth and generate £ 7 billion ($ 9.5 billion) in annual revenue within four years.

ASOS performed well throughout the pandemic, but warned in July that growth slowed.

Chairman Adam Crozier said Bayton did not promise to stay in ASOS to see at least half of the next five-year plan.

“In the last few conversations with Nick, we had jointly seen that he wasn’t going to participate in all of that, so it’s better to make changes now,” Crozier told Reuters. Stated. This year’s fall in stock prices was “useless.”

Treasury Officer Mat Dunn takes on the additional role of Chief Operating Officer and leads the business on a daily basis while a new CEO is sought. Katy Mecklenburgh, now Director of Group Finance, will be Interim Chief Financial Officer.

Ian Dyson, Senior Independent Non-Executive Director of ASOS, will replace Crozier, who was previously announced as Chairman of BT, as Chairman on November 29.

“We can be constrained by fluctuations in demand and global supply chain and cost pressures for the next 12 months, but we are confident in our ability to seize big opportunities in the future,” Dunn said. increase.

Supply chain disruption

ASOS reported a 36% year-on-year increase through August 31st. This is because the pandemic increase of £ 67.3 million when shoppers purchased leisure wear returned some of them rather than the option of party wear for the night out. .. Revenue increased 22% to £ 3.91 billion as the active customer base grew 13% to £ 26.4 million.

ASOS forecasts adjusted pre-tax profits of £ 110-140 million for the new 2021-22 as customer returns normalize. At the midpoint of the range, it is 35% below the average analyst forecast of 193 million before the update on Monday.

Sales growth was projected in the range of 10% to 15%. Analysts expected 20%.

ASOS is expected to continue supply chain pressure that has hit container ships and trucks globally during the pandemic until the first half of the year, resulting in longer lead times and limited supply from partner brands. I warned.

ASOS also faced higher inbound and outbound shipping costs, Brexit-related tariff costs and labor wage inflation.

Last month, rival Boohoo’s share price fell 12% after reporting slowing growth and warning about full-year profits.

ASOS said it plans to double the size of its combined US and European operations within four years, adding at least £ 1 billion to the Group’s annual brand sales.

“If we do the right thing and do it there, the stock price should take care of itself,” Crozier said.

($ 1 = 0.7341 pounds)

ASOS boss resigns when fast fashion retailer warns about Reuters profits

Source link ASOS boss resigns when fast fashion retailer warns about Reuters profits

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