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Dow Jones Newswires: ASOS warns of inflation hit; appoints new CEO, chairman

Online fashion retailer says inflation is taking a toll on the business as it shuffles the top management layer. Read More...

By Sabela Ojea

ASOS PLC said Thursday that it has adjusted its outlook for fiscal 2023 as inflation hits consumers, and that it has appointed Jose Antonio Ramos as its new chief executive officer and Jorgen Lindemann as chairman.

The online fashion retailer said revenue for the third quarter of the year ended May 31 declined to 983.4 million pounds ($1.20 billion) from GBP987.9 million for the year-earlier period as returns rates rose.

The company’s U.K. and U.S. sales rose by 4% and 15%, respectively, while European Union sales fell by 2%. The company said sales had accelerated since the end of February.

ASOS said that it expects to close the financial year with revenue growth in the range of 4% to 7% and an adjusted pretax profit in between GBP20 million and GBP60 million.

“What is now clear, based on the significant increase in returns rates that we have seen, is that this inflationary pressure is increasingly impacting our customers shopping behavior,” Chief Operating Officer Mat Dunn said.

Write to Sabela Ojea at [email protected]; @sabelaojeaguix

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