ASOS’ full-year underlying revenue fell by 14% to £2.5bn. A small increase in average basket value wasn’t enough to offset double-digit declines in active customer numbers.
Underlying cash profit (EBITDA) increased by 64% to £132mn, but missed market expectations of £138mn. The improvement was driven by a higher full-price sales mix and much lower supply chain costs.
Free cash flow fell from £38mn to £14mn. Net debt, including lease liabilities, improved from £0.6bn to £0.4bn.
This year’s guidance points to further growth in underlying cash profit to between £150-180mn. Free cash flow is expected to remain broadly flat.
The shares fell 7.1% in early trading.
Our view
HL view to follow.
ASOS key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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