ASOS’ underlying revenue fell by 16% to £2.9bn on a like-for-like basis, in line with previously downgraded guidance. Increases in average basket value were not enough to offset falling customer and order levels.
Underlying cash profit (EBITDA) was at the top end of the group’s prior expectations, but still fell 44% to £80.1mn impacted by lower sales and heavy discounting to clear inventory.
Free cash flow improved from an outflow of £213mn to an inflow of £37.7mn, helped by much higher operating cash flow and lower investment expenditure. Net debt, including lease liabilities, remained broadly flat at £0.6bn.
In the new year, gross margin is expected to improve by at least three percentage points to above 46%. Underlying cash profits are expected to grow more than 60% to between £130-150mn.
The shares fell 6.6% in early trading.
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ASOS key facts
All ratios are sourced from Refinitiv, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
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