Asos had plenty to talk about on Tuesday evening as it updated the markets on the coronavirus impact, released half-year results and announced it's raising extra cash. The overall message was one of strength.
The company has named Patrik Silén its Chief Strategy Officer, reporting to CEO Nick Beighton, the appointment being the third in a series of new hires “designed to strengthen the senior management team”.
An update from Asos showed sales growth slowing in the EU and US due to logistics issues. But growth in the UK and RoW, plus an end in sight to its warehousing woes all suggest a bright future for the firm.
Following news that Asos is looking to cut up to 100 jobs at its London headquarters, the online retailer could be looking at further redundancies after kickstarting a review at its customer care facility in Watford.
“Disappointing” was how Asos described its first half as pre-tax profits went into freefall (down 87%). While sales rose 14% for the six months to the end of February, the retail gross margin dropped 60bps.
Asos sales continue to rise in double-digit percentages in Q2, but also continued to rise at a slower rate than previously and that meant investor disappointment, with the firm’s shares falling 5% in early trading.