ASOS Reports 68 Percent Profit Decline, Cites "Operational Issues" as Cause

The company’s shares have also fallen around 49 percent.

By
Fashion 
6,465 Hypes 5 Comments

According to Business of Fashion, ASOS reported a hefty 68 percent decline in full year profit, as detailed in its recent full-year financial report that ended August 31.

The British retailer states that the root of the decline stems from its expanded warehouse presence, which includes a $40 million USD US-based warehouse addition that opened in Georgia in 2017, as well as an increased operational presence in Germany.

ASOS reported a pretax profit of £33.1 million GBP (approximately $42.2 million USD), which shows a decline when compared to the £102 million GBP (approximately 131.2 million USD) it made during the 2017-2018 period. The company’s shares have also reportedly fallen around 49 percent over the past year.

In a recent statement made by ASOS CEO Nick Beighton, the executive assures that despite the major setback, proper steps are being taken to get the business back on track:

“This financial year was a pivotal period for ASOS, where we have invested significantly and enhanced our global platform capability to drive our future growth. Regrettably this was more disruptive than we originally anticipated. However, having identified the root causes of our operational issues, we have made substantial progress over the last few months in resolving them. Whilst there remains lots of work to be done to get the business back on track, we are now in a more positive position to start the new financial year.”

In related news, Authentic Brands has officially made a $271 million USD bid to purchase Barneys.

Read Full Article
Source
Business Of Fashion

Join Our Discussions on Discord

The HYPEBEAST Discord Server is a community where conversations on cultural topics can be taken further.

101 Users Online

What to Read Next

Ronnie Fieg Teases Pieces from Two Upcoming KITH Collabs
Fashion

Ronnie Fieg Teases Pieces from Two Upcoming KITH Collabs

Alongside his upcoming Fall 2 drop.

Anthony Van Engelen and Vans Release Holiday 2019 Pro Collection
Footwear

Anthony Van Engelen and Vans Release Holiday 2019 Pro Collection

Shoes and apparel that meet AVE’s high standards.

Olivia Kim and Nike Salute '90s NYC Street Fashion With "No Cover" Collection
Fashion

Olivia Kim and Nike Salute '90s NYC Street Fashion With "No Cover" Collection

Megan Rapinoe, John Waters and Binx Walton appear in the lookbook.


Listen to Emotional Oranges' Sentimental New Track "Sundays"
Music

Listen to Emotional Oranges' Sentimental New Track "Sundays"

‘The Juice Vol. II’ releases next month.

Studio Ghibli Films Will Stream Exclusively on HBO Max (UPDATE)
Entertainment

Studio Ghibli Films Will Stream Exclusively on HBO Max (UPDATE)

After stating it would reject streaming services in favor of theatrical screenings.

Supreme Hints at San Francisco Presence in New Skate Clip (UPDATE)
Fashion

Supreme Hints at San Francisco Presence in New Skate Clip (UPDATE)

A shop could open this FW19.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.

Help Support Us

We need ads to keep the lights on and to continue providing free news to our readers. We’d appreciate your support by whitelisting HYPEBEAST on your ad blocker. That way you can keep reading all the great stories for free.

If you have already whitelisted us, simply refresh this page. To find out how to whitelist us, click the button below.

Back

Add Us to Whitelist

We appreciate your support in allowing HYPEBEAST ads. Most ad blockers have similar whitelisting steps and settings. If you need assistance, please contact us.

Adblock Plus

  1. Click on the red ABP icon in the upper right corner of your browser.
  2. Click “Enabled on this site” to disable ad blocking for the current site. In Firefox click “disable on HYPEBEAST”.
  3. Refresh the HYPEBEAST page that you were viewing.

Adblock

  1. Click the AdBlock hand icon.
  2. Click “Don’t run on pages on this domain”.
  3. A new “Don’t run AdBlock on…” dialog may be displayed in the middle of the screen.
  4. Move the “Site” slider to the right. After that, click “Exclude”.
  5. Refresh the HYPEBEAST page that you were viewing.

uBlock

  1. Click the uBlock icon.
  2. Click the large blue “power” button in the menu that appears to whitelist the current website.
  3. Reload the HYPEBEAST page that you were viewing.

Firefox Browser

Firefox Tracking Protection may activate our whitelist notice, which can be disabled temporarily for a browsing session by clicking the shield icon in the URL bar and following the instructions.

Disconnect

  1. Click the Disconnect icon.
  2. Click “Whitelist site”.
  3. Refresh the HYPEBEAST page that you were viewing.