The British online fashion retailer Asos is looking for a new boss. Nick Breighton is stepping down as CEO, the company announced today in London. After twelve years in the group, six of them as chairman of the board, the time had come, according to the reasoning. CFO Mat Dunn will take over day-to-day business, while Katy Mecklenburgh will be responsible for the finances. The search for a new CEO is ongoing.
Asos is also postponing its capital market day planned for October 14th to November 10th. The British online fashion retailer has also warned of a profit decline of more than 40 percent in the 2021/22 financial year that has just started.
Asos: higher logistics costs, delivery problems
Asos justified the poor outlook with higher logistics costs and problems with deliveries. In the 2020/21 financial year at the end of August, adjusted pre-tax profit climbed by 36 percent to the equivalent of 228.5 million euros.
The Zalando competitor is setting itself new medium-term growth targets that include annual sales of seven billion pounds sterling (six billion euros) and an operating margin (EBIT) of at least four percent.
The aim is to drive international growth. In addition, Asos is planning a massive increase in marketing spending. The outgoing chairman, Adam Crozier, announced that the online fashion retailer would now concentrate more on international growth.
In the fiscal year ended August, sales rose by a fifth to 3.9 billion pounds, the adjusted margin of earnings before interest and taxes (EBIT) was 5.3 percent, as Asos announced separately. For the new financial year 2021/22, the company expects sales growth of ten to 15 percent.