ASOS, once the shining example of Britain's shift towards online fashion retailing, has reported a first-half loss of £87.4 million ($110.3 million) for the six months leading up to February 28th. During the same period last year, ASOS had made a profit of £14.8 million.
Despite these disappointing figures and an 8% drop in sales during this time frame, the group remains confident that they will see a return to profitability in the second half and beyond.
In their efforts to reduce inventory and excessive discounting strategies, Asos Plc saw their operating losses widen to £272.5 million ($344 million). Nevertheless, Chief Executive Officer Jose Antonio Ramos Calamonte assures stakeholders that progress is being made on turning around its business despite "some very challenging conditions."
For the second half of this fiscal year, ASOS forecasts a decline in sales within low double digits as well as adjusted earnings before interest and tax between £40 million and £60 million—significantly improved when compared with their first-half losses.
Over the past twelve months alone, shares have lost about half their value; however recent UK sales statistics suggest stabilization may be on its way: while Europe remained flat overall during this period (-10%), US posted only a minor decrease (7%) while other international markets experienced more significant declines (-12%).
Additionally worth noting today are upcoming inflation numbers for April from financial markets within both England—where larger lorries have recently been approved by government officials—and Scotland & Wales respectively; alongside news regarding another Federal Reserve rate increase last week by 25bps which could potentially impact future CPI metrics moving forward into Q2-2021 or even further beyond based upon current economic trends globally at present