British online fashion retailer ASOS is looking for a new boss.
Nick Breighton is stepping down as CEO, the company announced on Monday in London. After 12 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 October 14th Capital Markets Day to November 10th. The online retailer and Zalando competitor has set itself new medium-term growth targets that include annual sales of 7 billion pounds sterling and an operating margin (EBIT) of at least 4 percent. The aim is to drive international growth. In addition, ASOS is planning a massive increase in marketing spending.
In the fiscal year ended August, sales rose by a fifth to 3.9 billion pounds (4.6 billion euros), the adjusted margin on 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 10 to 15 percent.
JPMorgan leaves ASOS on ‘Overweight’
The US bank JPMorgan has left the rating for ASOS at “Overweight” with a price target of 6680 pence. The outlook for financial year 2022 and the coming years means a correction risk of more than 30 or more than 20 percent in market expectations, wrote analyst Georgina Johanan in a study available on Monday. This extent comes as a surprise. The resignation of the CEO is likely to be well received because other eyes are now taking another critical look at the business.
In London, the ASOS share is currently falling 14.24 percent to 23.82 pounds in Monday trading, at the top it even went down for the paper by around 17 percent to 23.00 pounds. The papers of the German competitor Zalando are also weak: They temporarily lose 3.31 percent to EUR 74.72 on XETRA.