The British clothing retailer Asos Plc also had to accept a significant drop in sales in the third quarter of the 2022/23 financial year. On the other hand, the comprehensive reform program that the group initiated last fall appears to be bearing fruit.
In a statement published on Thursday, the company announced that it had increased its earnings before interest and taxes (EBIT) by more than 20 million British pounds (23 million euros) compared to the same period last year. The retailer explained that the “return to the profit zone” was operationally successful, without giving specific figures. The group is currently “on track” to meet its second half guidance of adjusted EBIT in the range of £40m to £60m. Investors honored the surprising news: Asos’ share price immediately jumped by more than 14 percent.
In the current financial year, savings and optimization measures have already led to cost reductions of around 200 million British pounds, the company said. For the full year, Asos is still targeting savings totaling around £300m.
Group sales, on the other hand, slipped again. In the months from March to May it amounted to 858.9 million pounds sterling (1.00 billion euros) and was thus eleven percent below the level of the same quarter of the previous year. Adjusted for special effects and exchange rate changes, revenues shrank by 14 percent.