LONDON, Oct 24 (Reuters) – British online fashion retailer ASOS (ASOS.L) on Tuesday postponed Wednesday’s planned publication of its annual results until Nov. 1, saying its auditor PwC needed more time.
“The short delay is to allow its auditor, PwC, to complete its planned testing. PwC has assured the Board that the outstanding procedures are limited in nature,” ASOS said in a statement.
Shares in ASOS, 23% of which are owned by Mike Ashley’s Frasers Group (FRAS.L), were down 2.4% at 1521 GMT, extending 2023 losses to 23.4%.
ASOS said its performance for the year to Sept. 3 was in line with that reported in its Sept. 26 trading update.
It said revenue was 3.54 billion pounds ($4.3 billion), with second half earnings before interest and tax (EBIT), its preferred profit measure, of over 38 million pounds, resulting in a full year EBIT loss of no more than 31 million pounds.
ASOS, which also plans to update on its strategy on Nov. 1, said it had cash and undrawn facilities as at Sept. 3 of 428 million pounds.
The group boomed during the pandemic but overhauled its business model last October after an economic downturn and operational problems hammered its profits and its shares.
The plan of CEO José Antonio Ramos Calamonte is to prioritise profit over top-line growth. He is reducing the amount of stock ASOS carries and refreshing ranges more quickly, while cutting costs and improving its cash position.
The group reduced its inventory by 30% in the 2022/23 year, partly through discounting, and has warned that an elevated level of discounting is likely to persist through 2023/24 and particularly through the first quarter as its seek to clear last year’s autumn/winter stock.
Analysts reckon warm autumn weather is unlikely to have supported a strong start to its new financial year.
Britain experienced its joint-hottest September on record last month, part of a heat wave that rival fashion retailer H&M (HMb.ST) said had depressed sales across much of Europe.
($1 = 0.8214 pounds)
Reporting by James Davey
Editing by David Milliken and Mark Potter
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