Asos plunges to £33.2m operating loss

The business reported adjusted group revenue of £2.9bn, a 16% decline year on year, for the year to 1 September 2024.

Adjusted EBITDA was £80.1m, a 36% decline year on year.

The fast fashion giant noted a significant cash flow improvement for the full year of £37.7m, a £250.7m improvement year-on-year.

Asos noted it reduced stock levels by  around 50% since the full year 2022 to £520m, through disciplined stock management and a roughly £100m write-down to complete transition to the new commercial model by end of full year 2024.

Chief executive, José Antonio Ramos Calamonte, said that following the year end Asos further strengthened its balance sheet with its Topshop Topman joint venture and its refinancing.

Calamonte added: “Our product is now in the strongest position it has been in years, with the right level of newness to excite customers, and we have fundamentally improved our profitability through a relentless focus on operational efficiency.

“With these solid foundations in place, we can focus on delivering experiences that delight our 20 million customers. There is much work to do, but we have already seen our efforts rewarded with new product sales increasing 24% year on year over the last three months. I am energised by the progress we have made so far and excited for the next phase of our journey."