ASOS details growth plans after last month’s shock CEO departure

LONDON, Nov 10 (Reuters) – British online fashion retailer ASOS laid out how it planned to meet its medium and long term profitability goals, seeking to restore investor confidence after it abruptly parted ways with its CEO last month and warned on 2022 profit.

Shares in the fast-fashion specialist tumbled in October when it said 2022 profit could fall by over 40% due to supply chain pressures and consumers returning to their pre-pandemic behaviour.

The group said Nick Beighton, chief executive for six years, was leaving immediately, a shock which rattled shareholders.

At a capital markets day on Wednesday, finance chief Mat Dunn, who is now leading the business having added chief operating officer to his remit, will tell investors that sales and profitability will rise in the future.

“Our plan will ensure that we fully leverage our strong, scalable global platform to deliver our ambitions,” he said in a statement.

The fast-fashion specialist said it aimed to “relentlessly” improve its fashion credentials, make partner brand availability better, extend product range into face and body and accelerate growth in the European Union and the United States.

Over the next three to four years, ASOS said it is targeting 7 billion pounds ($9.4 billion) of sales with an EBIT margin of at least 4%, helped by a forecast doubling of ASOS in the EU and U.S.

Beyond that it said that it said that its plans support an EBIT margin of at least 8% in the long term, helped by ongoing cost and scale efficiencies as it expands. ASOS said it currently delivers EBIT margins of 7% in the UK, 2% in Europe, (6)% in US and 4% in RoW.

($1 = 0.7414 pounds)

(Reporting by Sarah Young; Editing by Kate Holton)