(Alliance News) - Asos PLC on Tuesday backed its yearly outlook, as it reported progress on its stock clearing efforts, though half-year sales have declined.
Asos shares shot up 9.4% to 378.80 pence each in London on Tuesday morning.
The online-only fashion retailer said sales in the 26 weeks to March 3 declined around 18% on-year, an outcome "broadly" in line with guidance.
Asos is fighting to "clear aged stock" before it shifts to a new operating model in financial 2025. Asos said it is "ahead" on its plan to improve stock efficiency and reduce inventory to around GBP600 million by the current year end.
"Asos is becoming a faster and more agile business, aided by the incredible work of our teams to speed up all of our processes to deliver the fashion, quality and prices that our customers want, when they want it. I'm excited by the performance of our new collections, while we have also made great progress in monetising inventory that built up over the pandemic and in improving the core profitability of our operations. We have reconfirmed our guidance for FY24 as we lay the foundations for a more profitable, cash generative business from FY25 and beyond," Chief Executive Officer Jose Antonio Ramos Calamonte said.
Asos still expects a full-year sales decline of 5% to 15%, but positive adjusted earnings before interest, tax, depreciation and amortisation.
The London-based firm reported a revenue decline of 10% to GBP3.55 billion in the year ended September 3. Retail sales fell at the same pace to GBP3.39 billion.
By Eric Cunha, Alliance News news editor
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ASOS (ASC)