The British clothing retailer Asos Plc is relying on a leaner sales model in the USA as part of its ongoing savings program.
On Wednesday, the company announced it would close its fulfillment center in Atlanta. From the second half of the current 2024/25 financial year, online orders from customers in the USA will be processed via the distribution center in the northern English city of Barnsley as well as a “smaller and more flexible” local facility in the USA, according to a statement.
Asos expects the closure to have an annual positive effect on earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of 10 to 20 million British pounds, which should take effect from the 2025/26 financial year. The company estimated the one-off costs resulting from the decision due to value adjustments at around 190 million British pounds (225 million euros).
The clothing retailer stressed that the US would remain a “core market” for Asos. The company continues to believe that the business there can “return to sustainable sales growth and achieve an adjusted EBITDA margin of around eight percent in the medium term.”
