Asos will give insight into the world of fast fashion and online shopping when it delivers its trading figures next week.
Investors will be hoping for signs the online retailer’s turnaround mission is on track.
Although Asos thrived in lockdown when high street stores shut, it has had a turbulent couple of years since.
It took a hit from inflation and the rate at which young customers returned clothes.
But it has been almost a year since chief executive Jose Antonio Ramos Calamonte pledged to overhaul the business model. The plan included decreasing reliance on promotions and discounts, as this had been eroding margins and increasing return rates.
In its update for the three months to the end of May, the retailer said it was on track to achieve profits of £40m to £60m in the second half of the year. However sales dropped to £858.9m from £964.1m.
Aarin Chiekrie, an analyst at Hargreaves Lansdown, said: ‘With revenue declining at double-digit rates in the third quarter, profitability rather than growth is now the order of the day at Asos.
‘Resources are being reallocated away from the US, where extensive investment has so far yielded weak results.
‘Costs are getting stripped back too, with the group on track to hit its cost-saving target of £300m last we heard. These actions should stem the financial bleeding to some degree.’ Asos raised around £80m through new equity shares, which waters down existing shareholders’ stakes.
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