Fashion Retailer ASOS Hopes Cost Savings Will Help Profits In FY23 – ASOS (OTC:ASOMF)

  • online fashion retailer ASOS Plc ASOMF He said more than £300m of cost-cutting measures would help boost profit in FY23.
  • Cost-cutting measures are already in place and the benefits are expected to depend heavily on H2.
  • According to the company, these more than offset headwinds from inflation and annualized earnings rates throughout the year, which are expected to provide a marginal improvement in full-year profitability from expected losses in the first half of 2023.
  • Cost-cutting measures include downsizing of three substorage facilities in the second half of 2023, rationalization of office space, elimination of underperforming brands, reduction of labor costs and implementation of low-single-digit price increases.
  • Sales were down 3% in CCY excluding Russia for the four months ended December 31, 2022, reflecting challenging trading conditions. On a reported basis, the group’s total earnings for the four months he fell 4% to £1,336m.
  • We will shift our focus from prioritizing top-line growth to building a more relevant and competitive fashion business with a disciplined approach to capital allocation and ROI, and will continue to provide the necessary strategic and We are making operational changes. ”.
  • Price action: ASOMF shares closed at $6.42 on Wednesday.
  • photo via company

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