British online fashion retailer ASOS on Tuesday reported a 15% fall in fourth-quarter sales and said second half earnings were expected to be around the bottom of its guided range but said its turnaround plan was making progress.
The group led by CEO José Antonio Ramos Calamonte announced an overhaul of its business model last October after the economic downturn and a string of operational problems hammered its profits and shares.
His strategy is to prioritise profit over top-line growth by reducing the amount of stock ASOS carries, cutting costs and improving its cash position.
ASOS said the fourth quarter sales decline was in line with guidance, with a stronger start to the period followed by a weaker performance in July and August amidst a deterioration in the UK clothing market.
It said second half earnings before interest and tax (EBIT) would come in towards the bottom of the guided 40 million pounds to 60 million pounds ($49-$73 million) range with free cash inflow below expectations, due to what it said was timing effects that would reverse. (Reporting by James Davey; Editing by Kate Holton)