During the year period that ended on August 31, ASOS reported a 13% growth in active customer base to 26.4 million.
The price of the stock of British online fashion and cosmetic retailer ASOS PLC (LON: ASC) dropped as much as 14.35% on Monday to trade around 2,382.00 GBX. The sudden dip has directly been associated with two investors’ updates released by the company today. One of the updates gave the final results for the year 31 August 2021.
Notably, the global online fashion hub delivered strong financial results. Consequently, the firm is now committed to deal with short-term headwinds with a new medium-term plan and growth target. However, the company highlighted that it anticipates tougher times ahead.
“FY22 sales growth expected to be in the range of 10% and 15% with H1 revenue growth in mid-single digits reflecting: Tougher comparables in the first half of the year, particularly the UK (+66% since FY19),” the company explained in a press release.
The other investors’ updates indicated that Nick Beighton is to step down as the company’s CEO. “Mat Dunn, CFO, will take on the additional role of Chief Operating Officer and lead the business on a day-to-day basis, with Katy Mecklenburgh, currently Director of Group Finance, to support as Interim CFO,” the company explained.
As a result, the company has embarked on a new task to search for a new CEO led by Ian Dyson.
ASOS Results Summary
During the year that ended on August 31, ASOS reported a 13% growth in active customer base to 26.4 million. The company has however experienced notable challenges caused by the ongoing global Covid crisis. Nevertheless, the company reported sales growth of 22%, with exceptional growth in the UK +36% and strong growth in the US +21%.
Particularly, the online fashion firm has noted that supply chain-related challenges including high taxes have resulted in lower profit margins. Notably, Brexit is expected to significantly affect the company’s numbers to perhaps a single digit from a double-digit. “Gross margin down by 200bps to 45.4%, driven by elevated freight & Brexit-related duty costs, product mix, FX headwinds, and increased customer investment,” the company explained.
As of August end, the company reported a net cash position of £199.5 million. Additionally, the company recorded a new cash flow of £35.9 million.
ASC Stock Market
The company’s stock has been one of the most hard-hit shares by the ongoing global adoption of the new order. According to market analytics provided by MarketWatch, ASC stock has dropped approximately 54.78%, 50.20%, 49.92%, and 23.56% in the past year, YTD, three months, and one month respectively.
The company has a market capitalization of £2.77 billion and 99.84 outstanding shares.
Other stock market news can be found here.
next