Companies

ASOS appoints new CEO as it warns on profit

Jun 17, 2022 United Kingdom

The fashion retailer named José Antonio Ramos to the role of CEO and announced that Jgøren Lindemann will become Chair. The company also said that will be expecting lower profits this year

José Antonio Torres, who has been with the company since January 2021 as Chief Commercial Officer, has become Chief Executive Officer (CEO) and member of the ASOS board, effective immediately. In his 18-year career in retail, Torres led commercial strategy for companies such as Inditex, Esprit and Carrefour Spain, having started his career at McKinsey. He joined ASOS from the Portuguese fashion company Salsa Jeans, where he held the position of CEO for almost two years.

"José is the right person to lead ASOS through the next phase of growth (…) Since he joined the business, José has made an enormous contribution, driving change through our commercial function and bringing new energy and enthusiasm to the core product and trading functions of the business. José was a core part of the executive team that developed ASOS’ strategy, outlined last year, against which we are making continued progress, in spite of the backdrop of difficult market conditions", stated the current Chair of ASOS, Ian Dyson.

Meanwhile, Ian Dyson will step down as Chair, upon reflecting on the fact that he has been on the Board since 2013. He will be succeeded by Jørgen Lindemann, who joined the ASOS Board as a non-executive director on 1 November 2021, with effect from the 1^st of August. Lindemann has great experience in leading digital-first businesses: in addition to his role on the ASOS Board, he is currently the Chair of Miinto, the Danish-based online fashion marketplace and a Board member of Bambuser AB.

Third Quarter Results and Outlook

In the three months to the 31^st of May, ASOS posted revenue growth of 4%, as compared to the previous growth rate of 47%, reflecting the "significant increase in return rates in the UK and Europe towards the end of the period", and the inflationary pressure on consumers, "which has a disproportionate impact on profitability".

Given the market volatility, the company reported that is now expecting sales in the range of 4% and 7%, and adjusted profit before tax to be in the range of 20 million British pounds (23.2 million euros) to 60 million British pounds (69.5 million euros), on a comparable basis to the prior guidance of 110 million British pounds (127.4 million euros) to 140 million British pounds (162.2 million euros).

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