Asos reiterates outlook, appoints Patrick Kennedy to its board of directors

Asos plc reported revenue growth of 5 percent CCY or 2 percent reported in P1 to 1,393.1 million pounds. The company said in a statement that guidance for the year remains unchanged with revenue growth expected in the range of 10 percent to 15 percent and adjusted PBT of 110 million pounds to 140 million pounds.

The company also announced its intention to move to the London Stock Exchange’s Main Market by end of February 2022 and the appointment of Patrick Kennedy, chairman of Bank of Ireland Group plc, as senior independent non-executive director and audit committee chair following Ian Dyson’s appointment as non-executive chair of the board on November 29, 2021.

Commenting on the results, Mat Dunn, Asos COO, said: “Asos has delivered a robust start to the year, in line with the guidance we set out at full-year results, despite challenging market conditions. We are also pleased to announce today that we plan to move to the Main Market of the London Stock Exchange.”

Asos delivers sales growth despite challenges

The company added that sales growth was in line with the guidance. Supply chain constraints played out as anticipated, whilst market demand remained volatile due to significantly increased Covid caseloads across large parts of the UK, Europe, and the US. Active customer base increased by 0.3 million customers to 26.7 million, reflecting slower customer growth.

Gross margin decreased by 400 bps to 43 percent driven by heightened clearance activity to shift slow-moving ‘21 spring / summer stock, elevated freight costs, and use of air freight to circumvent supply chain constraints and maximise peak trading.

The company further said that UK delivered growth ahead of expectations at 13 percent to 645.2 million pounds, supported by strong peak performance and demand for going out wear, EU grew by 2 percent to 390.2 million pounds, significantly impacted by the fourth Covid wave, while US delivered growth of 11 percent to 172.6 million pounds. ROW performance of negative 15 percent to 185.1 million pounds, reflecting the continued impact of extended delivery propositions

Following a pilot of the Partner Fulfils programme, in partnership with Adidas and Reebok in the UK in November, the company plans to expand the model in FY22 including roll out to Europe. The Topshop brands posted strong growth of more than 200 percent on Asos platform. The company also debuted the first edit of Asos Design, Asos Edition, and Asos Luxe in two Nordstrom stores and online, with Asos Curve exclusively available on Nordstrom.com.

Asos appoints Patrick Kennedy to its board of directors

In a 30-year career in business, Kennedy has held a range of senior roles, having started his career at KPMG and McKinsey & Company.

Commenting on Kennedy’s appointment to the company’s board, Ian Dyson said: “On behalf of the board, I’d like to warmly welcome Patrick to Asos. His deep experience across a diverse range of businesses will complement the existing skillset of the board as Asos embarks on its next phase of growth.”

From 2006 to 2014 he was chief executive of Paddy Power plc and before that worked for Greencore Group plc, including as chief financial officer. He is currently chairman of Bank of Ireland, chairman of CarTrawler, the B2B travel technology company, and honorary treasurer of the Irish Rugby Football Union.

He was previously a non-executive director of Elan Corporation plc, where he chaired the leadership, development and compensation committee, and a non-executive director of Paddy Power plc, where he chaired the audit committee.