Fashion Retailer ASOS Hopes Cost Savings Will Help Profits In FY23 - ASOS (OTC:ASOMF)

Online fashion retailer ASOS Plc ASOMF said cost-saving measures amounting to more than £300 million would help drive profits in FY23.
The cost mitigation measures are already in the delivery phase, whose benefits are expected to be strongly H2-weighted.
The company said that these are expected to more than offset headwinds from inflation and return rates annualization throughout the year to generate a modest improvement in full-year profitability from an expected H1 FY23 loss.
The cost-saving measures include winding down three ancillary storage facilities in H2 FY23, office space rationalization, removal of unprofitable brands, reducing staff costs and implementing low-single-digit price increases.
For the four months to Dec. 31, 2022, sales declined 3%, CCY change ex Russia, reflecting challenging trading conditions. On a reported basis, total group revenue for four months fell 4% to £1.336 billion.
“We are undertaking necessary strategic and operational changes, with our focus shifting from prioritising top-line growth to building a more relevant and competitive fashion business with a disciplined approach to capital allocation and ROI,” said CEO Jose Antonio Ramos Calamonte.
Price Action: ASOMF shares closed at $6.42 on Wednesday.
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