Asos crashed to its first loss in 20 years as shoppers cut spending to combat the rising cost of living.
The fast fashion retailer lost £32m in the 12 months to August 31, having made a profit of £177m a year earlier. And sales grew at the slowest rate since it was set up in London 22 years ago.
Revenue rose 1 per cent to £3.9bn, a slowdown from the 20 per cent growth seen when lockdowns drove a boom in online shopping.
Asos crashed to its first loss in 20 years as shoppers cut spending to combat the rising cost of living
Costly returns, which weighed on profits, left it with more clothes than expected. The group, which owns brands including Topshop and Miss Selfridge, will now write off up to £130m of stock, partly through selling items at huge discounts.
It will remain loss-making for the first half of the current year. And it said the slump in consumer spending would continue.
AJ Bell investment director Russ Mould said the results were ‘sobering, but not apocalyptic’.
But Asos boss Jose Antonio Ramos Calamonte, who took over in June, said: ‘I have set out a clear change agenda to strengthen Asos over the next 12 months.’
It included measures to cut costs and shield it from the cost of living squeeze. Shares rose 12.2 per cent, or 60p, to 550p, but are down 77 per cent in 2022.
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