ASOS Posts Loss In H1, Plans To Return On Profit Lane In H2 FY23

Loading...
Loading...
  • ASOS PLC ASOMY reported an H1 FY23 revenue decrease of 8% Y/Y and 7% Y/Y in constant currencies (ex-Russia) to £1.84 billion.
  • The top-line decline reflects planned capital allocation initiatives to improve profitability and a weak trading environment. 
  • In constant currencies, sales fell in the U.K. by 10% Y/Y, the U.S. by 7% Y/Y and the Rest of the World by 12% Y/Y (ex-Russia), while sales in Europe remained flat Y/Y.
  • Adjusted gross margin contracted 20bps Y/Y to 42.9% in H1 FY23.
  • The company reported adjusted EBIT of £(69.4) million vs. £26.2 million in H1 FY22, reflecting inflation and return rates normalisation related negative impact of around £180 million. 
  • Capital expenditure rose to £115.0 million from £86.5 million in the prior year quarter, and free cash outflow stood at £(262.7) million in H1 FY23 (vs. £(256.5) million a year ago).
  • The company had cash and undrawn facilities of £408.6 million at the end of H1 FY23.  
  • Outlook: For H2 FY23, ASOS expects sales (ex-Russia in constant currencies) to decline in low double-digits Y/Y and adjusted gross margin to expand 200 bps Y/Y.
  • The company projects an adjusted EBIT of £40 million-£60 million, with a margin of around 3%. It projects capital expenditure of £60 million-£85 million and free cash inflow of over £150 million.
  • For FY23, ASOS anticipates free cash outflow of around £(100) million and capital expenditure of £175 million-£200 million. The company says it is on track to garner Driving Change agenda benefits of over £300 million. 
  • "We are improving our gross margin run rate in the face of significant headwinds, are starting to see the benefits of a repositioned stock profile, and are taking action to reduce the proportion of our sales which are not profitable. Initiatives are in place to drive a further c.£200m of benefit in the second half and I am very confident of our return to sustainable profit and cash generation in the second half of the year and beyond,” stated José Antonio Ramos Calamonte, CEO 
  • Price Action: ASOMY shares closed lower by 7.08% at $8.14 on Tuesday.
Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceSmall CapMarketsMediaBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...