ASOS has updated its guidance for the remaining year as it continues to tackle a high return rate and uncertain consumer behavior.
The company is now expecting revenue growth in the 4% to 7% range and adjusted profit before tax to be between 20 million and 60 million pounds, much lower than the 110 million to 140 million pounds the company had previously forecast.
That said, ASOS’ Q3 results were in line with analysts’ expectations, with the company reporting sales growth of 4%.
“What is now clear, based on the significant increase in returns rates, is that this inflationary pressure is increasingly impacting our customers’ shopping behavior,” said ASOS Chief Operating Officer Mat Dunn.” It is too early to tell for how long the current pattern of customer behavior will continue, but we are taking swift and decisive steps to minimize the impacts.”
While ASOS is anticipating a downturn in sales, it is working to strengthen its leadership to drive the company through its next growth phase. On Thursday, the company announced the appointment of Antonio Ramos Calamonte as its chief executive officer and Jgøren Lindemann as its chair.
Calamonte, who in his last role served as ASOS’ chief commercial officer, brings more than 18 years of experience working for global brands such as Esprit, Inditex, and Carrefour Spain. Meanwhile, since November 2021, Liderman has served as a non-executive director on the ASOS board.
“José is the right person to lead ASOS through the next phase of growth,” said Ian Dyson, outgoing chair of ASOS. “Since he joined the business, José has made an enormous contribution, driving change through our commercial function and bringing new energy and enthusiasm to the core product and trading functions of the business.”