ASOS, the online fashion retailer, announced today that its revenue for the fourth quarter ending September 3 experienced a 12% decline compared to the previous year. Additionally, its revenue for the entire year dropped by 10%.
The company attributes this decline to a weak performance in July and August, which coincided with a deterioration in the U.K. clothing market. Despite the decrease in sales, ASOS expects the fourth quarter to be profitable.
ASOS has implemented cost-saving measures that have proven to be effective, resulting in approximately £300 million ($366.3 million) of profit improvement. This achievement aligns with the company’s annual guidance.
While ASOS saw a rise of around 150 basis points in adjusted gross margin for the second half of fiscal 2023, it fell slightly short of the expected increase of over 200 basis points.
Looking ahead, ASOS anticipates earnings before interest and taxes for the second half to be at the lower end of their guided range of £40 million to £60 million. Additionally, they now forecast a free cash inflow of approximately £60 million for the latter half of the year.