Online fashion retailer expects sales to fall in fiscal 2024
- ASOS reports swing to pretax loss for fiscal 2023
- Double-digit revenue decline due to investments and inventory management
- Sales for fiscal 2024 expected to fall 5% to 15%
- Adjusted pretax loss of GBP70.3 million
- Revenue fell to GBP3.54 billion from GBP3.94 billion
- Positive adjusted Ebitda and material cash generation expected for fiscal 2024
- ASOS aims to return to growth in fiscal 2025
ASOS, the online fashion retailer, has reported a swing to pretax loss and a double-digit revenue decline for fiscal 2023. This was attributed to investments and strong inventory management. The company expects sales for fiscal 2024 to fall between 5% and 15%. The pretax loss for the year ended September 3 was GBP296.7 million, compared to a loss of GBP31.9 million in the same period last year. After adjusting for exceptional and one-off items, the adjusted pretax loss was GBP70.3 million. Revenue also decreased from GBP3.94 billion to GBP3.54 billion. Despite the expected decline in sales, ASOS anticipates positive adjusted Ebitda and material cash generation in fiscal 2024. The company plans to clear stock brought in under its old model while improving speed to market and investing in its brand. ASOS aims to return to growth in fiscal 2025.
Factuality Level: 8
Factuality Justification: The article provides specific financial figures and statements from ASOS regarding their fiscal year 2023 performance and expectations for fiscal year 2024. The information is presented in a straightforward manner without any obvious bias or opinion. However, without additional sources or context, it is difficult to verify the accuracy of the information provided.
Noise Level: 6
Noise Justification: The article provides information on ASOS’s financial performance for fiscal 2023, including a swing to pretax loss and a decline in revenue. It mentions the company’s expectations for fiscal 2024 sales to fall and its plans to clear stock and improve speed to market. However, the article lacks in-depth analysis, evidence, or solutions to address the challenges faced by ASOS. It also does not explore the consequences of the company’s decisions on stakeholders or hold powerful people accountable. Overall, the article provides some relevant information but lacks depth and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: ASOS
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses ASOS’s financial performance and expectations for fiscal years 2023 and 2024. However, there is no mention of any extreme events or their impact.
Public Companies: ASOS (ASOS)
Key People: Jose Antonio Ramos Calamonte (Chief Executive)
Reported publicly:
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www.retailsector.co.uk 
