British online fashion retailer ASOS has reported a substantial 18% decrease in statutory group revenue for the fiscal year 2024 (FY24), with figures dropping to £2.90bn ($3.77bn) from £3.54bn in FY23.
The company’s financial performance saw declines across major markets, including a 12% drop in UK sales and a 28% fall in US sales.
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The retailer’s operating loss deepened to £331.9m, from the £248.5m loss reported in FY23.
Both basic and diluted loss per share worsened to 284.4p in FY24 compared to 213.0p in the previous year.
Its pre-tax loss was at £379.3m against £296.7m in FY23.
Asos experienced a contraction in reported gross margin by 110 basis points to 40.0% in FY24 from 41.1% the previous year.
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By GlobalDataAsos CEO José Antonio Ramos Calamonte said: “We achieved our key priorities for the year, significantly reducing our inventory position, while generating positive adjusted earnings before EBITDA [earnings before interest, taxation, depreciation and amortisation] and free cash flow. Following the year end, we further strengthened our balance sheet with our Topshop/Topman joint venture and our refinancing.
“Our product is now in the strongest position it has been in years, with the right level of newness to excite customers, and we have fundamentally improved our profitability through a relentless focus on operational efficiency.
“With these solid foundations in place, we can focus on delivering experiences that delight our 20 million customers. There is much work to do, but we have already seen our efforts rewarded with new product sales increasing 24% YoY [year-on-year] over the last three months. I am energised by the progress we have made so far and excited for the next phase of our journey.”
Looking ahead to FY25, Asos anticipates benefits from its new commercial model, expecting gross margin improvement of at least 300 basis points to more than 46%, and adjusted EBITDA growth of at least 60% to between £130m and £150m.
The company forecasts free cash flow to be broadly neutral, with capital expenditures of approximately £130m and cash interest of around £35m.
In September 2024, Asos entered into a joint venture agreement with Heartland’s subsidiary to acquire the Topshop and Topman brands, which is expected to further strengthen its market position.
