Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Asos warns over profits as it unveils new bosses

Online fashion firm Asos has warned that a cutback in spending aby shoppers amid the cost-of-living crisis will hit profits, as it announced a new chief executive and chairman (Asos/PA)
Online fashion firm Asos has warned that a cutback in spending aby shoppers amid the cost-of-living crisis will hit profits, as it announced a new chief executive and chairman (Asos/PA)

Online fashion firm Asos warned that a cutback in spending by shoppers amid the cost-of-living crisis will hit profits, as it announced a new chief executive and chairman.

The group slashed its outlook for sales and profits after seeing a sharp rise in order returns as customers rein in spending in the face of rocketing inflation, sending shares plunging by more than a fifth on Thursday morning.

It saw UK sales growth drop to 4% to £431.8 million in the third quarter to May 31 as returns rates rose, while total group revenues fell to £983.4 million from £987.9 million a year earlier.

It now expects full-year sales to grow by 4% to 7%, with underlying pre-tax profits of between £20 million and £60 million.

Chief operating officer Mat Dunn said: “What is now clear, based on the significant increase in returns rates that we have seen, is that this inflationary pressure is increasingly impacting our customers’ shopping behaviour.

“It is too early to tell for how long the current pattern of customer behaviour will continue but we are taking swift and decisive steps to minimise the impacts.”

Mr Dunn told reporters on Thursday that shoppers are buying as many items as before cost-of-living pressures, but have handed back more purchases for refunds.

He also cautioned that the company believes younger shoppers have been among the first to feel the brunt of surging inflation.

“Our position is that 20-somethings are more exposed than most because of lower levels of discretionary income,” he said.

“Also, this group is renting more and have seen rental prices increase significantly, so there are big pressures on these customers.”

The warning came as it promoted chief commercial officer Jose Antonio Ramos Calamonte to the top job and named non-executive director Jorgen Lindemann as chairman in a clean sweep at the helm.

Mr Ramos Calamonte becomes chief executive with immediate effect, taking on the role after former boss Nick Beighton left abruptly last October following a profit warning.

The incoming boss joined Asos from Portuguese retailer Salsa Jeans last year, where he was chief executive for almost two years, and was also previously in charge of the commercial strategy for brands including Zara owner Inditex.

Mr Lindemann will become chairman on August 1, taking over from Ian Dyson, who replaced Adam Crozier only last November.

Mr Dyson said: “Jose is the right person to lead Asos through the next phase of growth and the board is delighted that he is becoming CEO at such an important time.

“Since he joined the business, Jose has made an enormous contribution, driving change through our commercial function and bringing new energy and enthusiasm to the core product and trading functions of the business.”

Mr Ramos Calamonte said: “Asos is a great business with a strong brand, a compelling customer offer and great people.

“I joined Asos because it is a business I had admired for a long time.”

Shares in Asos were 29.5% lower at 815.5p after early trading on Thursday.

Already a subscriber? Sign in

[[title]]

[[text]]