Asos grows driven by the United Kingdom

Asos grows driven by the United Kingdom
An Asos campaign (ph official website)

UK tows budget 2021 by Asos. The domestic market was the main outlet for UK e-commerce, where a +7% of revenue was recorded. A good performance that was supported by a well-curated offer and a differentiated visual language, which led to growth in the active customer base above the company average (+5%) and a further increase in premium customers (+6%) , with a consequent increase in the average frequency of orders (+5%).

The new CEO José Antonio Ramos Calamonte diagnosed a number of issues Asos is now facing, including international operations that fell short of roic expectations, particularly in the US, the need to review and revamp the business and customer acquisition model, and the provision of products and services.

Over the next twelve months, the company will therefore take four actions aimed at improving its ability to deal with the current uncertainty, focused on business model renewal and improvement of inventory management, simplification and cost reduction. In parallel, management is focused on building a company capable of generating long-term sustainable growth for investors and a comprehensive review of Asos’ capital allocation is underway. This includes a review of the operating model, marketing investments, capital and resource allocation and distribution across geographies, customer acquisition channels, and digital and data capabilities.

Furthermore, last Friday the company confirmed that it was in talks with the banks to modify the terms of a 350 million pounds credit line (equal to almost 405 million euros at today’s exchange rate) which would guarantee “greater flexibility in difficult economic times” (see MFF of 17 October). (All rights reserved)

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