- Asos revenue increases by 1% to £3.94 billion.
- The group reported a pre-tax loss of £31.9 million.
- Shares of Asos are currently up 12.61%.
Asos reported its full-year results on Wednesday, which saw the company suffer further losses as the cost-of-living crisis continues to impact retail.
The online fashion retailer posted revenues in the year of £3.94 billion, a 1% increase from the prior year. However, Asos faced significant hits to profits, reporting a pre-tax loss of £31.9 million, down from a profit of £177.1 million a year ago.
Despite suffering a loss, Asos stock increased 12.61% on Wednesday.
Online fashion groups such as Asos and Boohoo saw a boost from the pandemic. However, pressures on UK households and the return of in-person shopping have caused major difficulties for these firms.
“Against the backdrop of an incredibly challenging economic environment, this unique combination has enabled our business to deliver a resilient performance this financial year in the UK – but I know we as a Company can achieve far more,” said Jose Antonio Ramos Calamonte, recently appointed Chief Executive.
The group announced operational changes focused on renewing its commercial model and improving inventory management, simplifying and reducing its cost profile, ensuring a robust and flexible balance sheet, and reinforcing the leadership team, and refreshing the culture.
Asos further stated that against a volatile macroeconomic environment, it is difficult to predict consumer demand patterns, but it expects a decline in the apparel market over the next 12 months.