Final results for the year to 31 August 2022

Final results for the year to 31 August 2022

Final Results for the year to 31 August 2022

Driving Change, Now 

  • The UK, ASOS’ core operation, delivered good performance (+7%) despite the weakening consumer environment. This has been supported by a curated offer and differentiated visual language, leading to a growth in active customer base ahead of the Company average (+5%) and a further increase in Premier customers (+6%), resulting in an increase in average order frequency (+5%)
  • Strong Topshop performance (+105%) reinforcing revenue growth in the UK, US and EU and driving margin expansion 
  • New CEO now in place with a diagnostic of the issues ASOS faces including: international operations that have lagged expectations on ROIC, particularly in the US; a need to review and renew the customer acquisition and commercial model; a supply chain operation which has become inefficient in the face of supply chain disruption and macroeconomic challenges; the need to better leverage data and digital improvements to successfully engage the customer; and the need to strengthen the leadership team and refresh the company culture
  • Over the next 12 months, ASOS will deliver on four actions targeted at improving its ability to navigate the existing uncertainty, focused on: renewing its commercial model and improving inventory management; simplifying and reducing its cost profile; ensuring a robust and flexible balance sheet; and reinforcing the leadership team and refreshing the culture
  • In parallel, management is focused on creating a business capable of generating long-term sustainable growth for investors and a comprehensive review is underway of ASOS’ capital allocation. This includes a review of the operating model, marketing investment, capital and resource allocation and its deployment across geographies, customer acquisition channels and digital and data capabilities
  • To navigate the continued macroeconomic volatility, ASOS has agreed additional financial flexibility through the renegotiation of core banking covenants, with cash and committed facilities of over £650m at year end 
  • Under the new commercial model, ASOS expects a non-cash stock write-off of £100m – £130m in FY23, which will increase flexibility within the logistics operations and reduce costs 
  • Eugenia Ulasewicz and Luke Jensen, Non-Executive Directors, have decided not to seek re-election at the Company’s next AGM


Unaudited summary financial results



Year to 31

August 2022

Year to 31

August 2021



CCY2 change

CCY change excluding Russia3

Group revenues4






Gross margin






Operating (loss)/profit






Operating (loss)/profit margin






Adjusted EBIT5






Adjusted EBIT margin5






Adjusted profit before tax5






Reported (loss)/profit before tax






Diluted (loss)/earnings per share6






Net (debt)/cash5






1All numbers subject to rounding throughout this document, 2Constant currency is calculated to take account of hedged rate movements on hedged sales and spot rate movements on unhedged sales. Any reference to total or retail sales throughout the document is on a constant currency basis, 3Calculation of metrics, or movements in metrics, on an ex-Russia basis involves the removal of Russia from H2 FY21 performance. This adjustment allows year-on-year comparisons to be made on a like-for-like basis following the decision to suspend trade in Russia on 2 March 2022, 4Includes retail sales and income from other services, 5Definitions of the adjusted performance measures used above and throughout this document can be found in Note 11, page 29  of the Condensed Financial Statements, 6Diluted earnings per share for the year to 31 August 2021 has been restated. The previously disclosed number was 125.5p, and further information on the change can be found in Note 3, page 24 of the Condensed Financial Statements

José Antonio Ramos Calamonte, Chief Executive Officer said:

“ASOS is a strong business with a compelling brand, customer offer and fashion credibility, with dedicated and passionate employees. Against the backdrop of an incredibly challenging economic environment, this unique combination has enabled our business to deliver a resilient performance this financial year in the UK - but I know we as a Company can achieve far more. 

“Today, I have set out a clear change agenda to strengthen ASOS over the next 12 months and reorient our business towards the future. This includes a number of decisive, short-term operational measures to simplify the business, alongside steps to unlock longer-term sustainable growth by improving our speed to market, reinforcing our focus on fashion, strengthening our top team and leveraging data and digital developments to better engage customers.

 “On the basis of the actions I have set out today, the team and I will work resolutely to emerge from these turbulent times as a more resilient and agile business – all the time guided by our purpose, to give our customers the confidence to be whoever they want to be.”

CEO Review

I am honoured to hold the role of CEO at ASOS. This is a business with c.26 million customers, c.£4bn revenue, a market leading position in the UK and enormous potential. In the UK, ASOS is a strong business with a high contribution margin, supported by a fully automated and efficient warehouse footprint. Brand awareness is strong and we have built a highly relevant and locally tailored product offer that resonates strongly with our 8.9m UK consumers, of which 1.9m are Premier customers. On average, our UK customers shop every second month on the ASOS platform, with Premier customers shopping more than double that frequency.

Outside the UK, however, I see a significant need to improve the way we operate to unlock the opportunity of our global reach. In recent years, the quest for growth has resulted in ASOS becoming excessively capital intensive, too complex and overstretched globally, which has resulted in a lack of meaningful growth and scale in its key international markets of the US, France and Germany. While the international business makes a positive contribution and there are pockets of strength in key territories, we are disappointed in our performance, given the extent of our historical capital investment, particularly in the US. This investment in a large, multi-region supply chain network has increased cost and complexity, not fully offset by delivery incomes. With this in mind, we will revisit our approach to resource and capital allocation to ensure a focused approach. 

ASOS has historically underinvested in marketing relative to peers with (i) allocation across markets not effectively prioritised or managed effectively to ensure a return on investment; and (ii) more than 80% of marketing investment focused on performance marketing, leaving insufficient spend focused on driving longer-term brand awareness. As a result of this, customer acquisition has slowed in FY22, whilst the cost to acquire a new customer has increased. We have also become increasingly reliant on the use of markdown and promotions as a tool to attract customers, resulting in reduced newness for customers which has contributed to the erosion of gross margin in recent years. The implementation of the new commercial model and structure will enable ASOS to operate a shorter buying cycle, enhancing speed to market and improving curation, and result in a change in stockholding requirements going forward.

In this tough economic environment, ASOS will continue to build on its core strengths – the ASOS brand, the carefully curated range of Partner Brands on offer, its strong fashion credibility and market leading position in the UK. ASOS is a fashion destination, and we will double down on our commitment to fashion to succeed in the current environment.

We are taking firm action now to accelerate the changes needed to address these issues and will take the opportunity to develop a stronger organisation, built on four key principles: simplicity; speed to market; operational excellence; and flexibility and resilience. In doing so, we will emerge well-positioned to drive profitable growth over the longer term.

Over the next 12 months we are focused on delivering key operational improvements and disciplined capital allocation through four key actions:

  • Renewed commercial model: Following the completion of the Commercial reorganisation in FY22, changes in ASOS’ approach to merchandising and buying will be accelerated in support of a more competitive proposition and tighter stock cover. This will result in:
    • a shorter buying cycle with enhanced speed to market that enables a more relevant and better curated customer offer
    • a more flexible approach to stock that utilises ASOS’ Partner Fulfils capability to reduce stock held in our fulfilment centres and ensure more near-shore sourcing using a “Test and React” model
    • a differentiated approach to stock clearance, introducing more off-site routes to clear product earlier in its lifecycle which will, in turn, reduce markdown and increase the proportion of full-price sales
  • Stronger order economics and a lighter cost profile: After years of high growth, the operating model has become inefficient. ASOS will take action to improve order economics and ensure a sustainable level of profitability in all markets, whilst focusing efforts on key markets. We will coordinate this effort with a clear focus on optimising our cost base, improving supply chain efficiencies, and eliminating excess costs through increased controls.
  • Robust, flexible balance sheet: Our future investment will be aligned with capacity requirements to ensure a more efficient allocation of capital, while planned strategic investment in technology will be maintained in support of an improved customer experience. In addition, ASOS has sufficient headroom on its facilities, ensuring flexibility in the short term.
  • Enabled by a reinforced leadership team and refreshed culture: Simplifying decision-making processes to encourage a culture of innovation and creativity across the business, while reinforcing the senior leadership team with strategic key hires.

Progress against these changes will be evidenced by gross margin expansion, increased stock turn, faster speed to market and more effective capital deployment.

In parallel, management is focused on creating a business capable of generating long-term sustainable growth for investors and there is a comprehensive review underway of ASOS’ capital allocation. This includes a review of our operating model, marketing investment, capital and resource allocation and its deployment across geographies, customer acquisition channels and digital and data capabilities.

We will do all of this whilst remaining committed to Fashion with Integrity and to providing the best possible experience for our customers, but with the knowledge that these commitments are best delivered by a sustainable, profitable business with the ability to invest accordingly. 

FY23 Outlook       

Trading has remained volatile into the start of FY23, with September 2022 trading showing a slight improvement relative to August 2022. Against the backdrop of significant volatility in the macroeconomic environment, it is very difficult to predict consumer demand patterns for the upcoming year. Within the UK, ASOS expects a decline in the apparel market over the next 12 months but remains confident in its ability to take share against that backdrop.

As a consequence of moving to the new commercial model, ASOS will right-size its stock portfolio in the first half resulting in a non-cash write-off of £100m – £130m.  Given the exceptional nature of the write-off, it will be treated as an adjusting item. ASOS will begin to operate with lower stock levels in the second half due to the lead time on orders and deliveries. In addition to this, ASOS expects c.£40m of adjusting items relating to the change programme, and Topshop Brand amortisation.

ASOS has reviewed its capital expenditure for FY23 and taken action to reduce spend appropriately, while still ensuring its long-term competitiveness. As a result, ASOS is reviewing the phasing of its automation projects in Atlanta and Lichfield to better align with expected capacity requirements. ASOS will, however, continue with purposeful technology investments in customer experience and digital improvements.

Taken together, over the next 12 months, ASOS expects:

  • The combination of lower freight costs (c.100bps), the measures taken in support of the new commercial model and a lighter cost structure to more than offset the impact of both inflationary headwinds in ASOS’ cost base and expected cost of elevated return rates over the next 12 months
  • H1 loss driven by the usual profit phasing and exacerbated by elevated markdown to clear stock resulting from the change in commercial model, with the contractual freight rate decline year-on-year and cost mitigations expected to mostly benefit the second half
  • Capex of £175m - £200m, below the previously guided £200m - £250m mid-term range
  • An expected free cash flow in the range of (£100m) - £0m, with the business expected to return to cash generation in the second half as the new commercial model begins to have a positive impact on gross margin and working capital, and the cost reduction impacts accelerate
  • To navigate the continued macroeconomic volatility, ASOS has agreed additional financial flexibility through the renegotiation of core banking covenants, with cash and committed facilities of over £650m at year end

In conclusion, ASOS is fully focused on creating long-term sustainable growth, and is confident that these short-term operational measures, combined with a longer-term focus on creating a more digitally based organisation, with a more efficient operating model, a reinvented customer acquisition dynamic, and a global footprint that optimises capital allocation, will enable it to deliver on its strategic ambitions.


FY22 Financial Overview

All revenue growth figures are stated at constant currency unless otherwise indicated.

ASOS delivered total sales growth of 4%[i](1% on a reported revenue basis[ii]) with an adjusted profit before tax (‘PBT’) of £22.0m (adjusted PBT margin of 0.6%), in line with guidance. The reported loss of £31.9m is stated after £53.9m of adjusting items. Adjusted earnings before interest and tax (‘EBIT’) were £44.1m representing an adjusted EBIT margin of 1.1%, a 420bps decline year-on-year.

The second half of the year proved more challenging than expected. While ASOS had expected an acceleration in revenue growth against weaker comparatives, inflationary pressures on consumers increased markedly as the year progressed, and impacted consumers’ confidence and discretionary income. As a result, growth in the second half was lower than had been anticipated. The Company also saw an increase in return rates through the year, rising above pre-pandemic levels from May onwards. Together, these led to higher inventory levels across all fulfilment centres, further exacerbated by the immediate withdrawal from Russia on 2 March 2022.

ASOS delivered revenue growth in the UK and US of 7% and 10% respectively. Growth in Europe of 2%, while Rest of World (‘RoW’) declined by 9%[iii]. Active customers[iv] have grown by 2% from 25.3m at the end of FY21 to 25.7m at the end of FY22, however, growth in active customers slowed in the second half as customer acquisition became more challenging.

Gross margin reduced by 180bps, in line with guidance. The reduction reflected the anticipated contractually higher sea freight rates year-on-year, along with the full-year impact of increased promotional activity. This was partially offset by lower markdown costs in the second half year-on-year, along with improvements in buying margins and the benefit of mid-single digit price increases across ASOS brands for both Spring/Summer and Autumn/Winter collections.

ASOS increased its UK and RoW capacity during the year, bringing the Lichfield fulfilment centre online in August 2021. This gave rise to an anticipated increase in shipping and warehouse costs given the ensuing manual fulfilment costs and split orders. Furthermore, FY22 was marked by significant inflationary pressures across labour, freight and delivery costs, with the impact on profitability exacerbated by elevated inventory levels and an increase in return rates across the year. ASOS was able to partially mitigate these cost headwinds by reducing planned marketing investment, in addition to securing continued cost and operational efficiencies. As a result of these actions, ASOS delivered c.£120m in cost mitigation to largely offset cost escalations through Lean programme efficiencies, payment optimisation and returns process optimisation.

Cash outflow of £339.8m reflects primarily the working capital outflow associated with an increase in inventory driven by (i) a marked slowdown in demand driven by global economic uncertainty; (ii) the timing impact of FY21 stock that was only received in FY22 as a result of supply chain delays; (iii) the impact of increased returns; and (iv) the early receipt of FY23 stock in FY22. Capital expenditure totalled £182.9m in support of the planned automation programmes at Lichfield and Atlanta; technology investments into digital platforms, business systems and infrastructure in support of the development of the marketplace integration platform required for Partner Fulfils; continued optimisation of the customer experience in support of new features and improvement in conversion; and investments in support of ASOS’ progress against its data strategy.


FY22 Performance by Market


Revenue growth in the first half, despite a period of tough prior year comparatives, continued into the second half with strong seasonal demand for summer products in the early part of the Spring/Summer season. Consumer behaviour, however, underwent a marked change from April 2022 when consumers faced accelerating inflation and pressure on disposable incomes and reduced demand for transitional product at the start of the Autumn/Winter season. This effect on consumer behaviour became most apparent via the impact on return rates, as these increased from May 2022 to levels close to pre-pandemic.

Despite this, the UK delivered good revenue growth for the year of 7% to £1,762.8m. Whilst overall online penetration stepped back year-on-year, ASOS continued to grow its share of the adult online apparel market by 140bps to 10.1% in FY22. Demand also shifted into occasion wear, supporting average selling price (‘ASP’) growth. ASOS delivered growth in active customers of 5% along with increasing orders, visits, conversion and average order frequency; however, average basket value (‘ABV’) and average units per basket (‘ABS’) declined in the period driven primarily by the step up in return rates and increased levels of markdown. 


ASOS growth of 2% in Europe to £1,170.0m as the region became increasingly exposed to higher energy costs and inflationary pressures. Growth did, however, accelerate in P4 to 9% as the Company cycled a period of softer comparatives. Customers in Germany appeared most exposed to the cost-of-living pressures, with consumer demand in France also impacted throughout much of the year driven by a shift back to physical stores. This change in customer behaviour was once again most apparent in the step up in return rates from April to above pre-pandemic levels, as Northern European territories increasingly leveraged Buy Now Pay Later payment methods and country mix shifted in favour of territories with higher return rates.

Despite the slowdown in consumer demand, ASOS held visits share in Germany. ASOS observed a step back in ABV and ABS resulting from the step up in return rates, but delivered growth in orders, visits, conversion, average order frequency and ASP in the region.


The US delivered revenue growth of 10% for the year to £531.4m, supported by Topshop and Topman growth, the expansion of wholesale and a more locally relevant offer. Customer acquisition slowed in the US in the second half as ASOS paused its broad reach marketing campaign in response to current economic conditions and visits growth stepped back year-on-year. However, the number of Premier customers grew by 19%, driven by the optimisation of the Premier offer, as the proposition remains central to increasing customer engagement and driving loyalty.

A shift into dresses supported growth in ASP and ABV, and ASOS also observed a 20bps uplift in conversion. However, orders and ABS stepped back.

Rest of World

Rest of World declined by 9% to £472.3m[v]. This segment was particularly hard hit by the continued delivery disruptions in the first part of the year, but saw improved performance in the second half in Australia and Saudi Arabia as air traffic resumed supporting accelerated delivery propositions.

ASOS observed growth in ASP alongside flat conversion; however, ABV, ABS, active customers, orders and visits stepped back[vi].

FY22 Operational highlights

Despite a highly volatile and difficult macroeconomic backdrop in the second half of the year, ASOS has made progress in key operational areas which will underpin performance in the medium term. These areas of progress are outlined as follows:

1.      Gaining flexibility through Partner Fulfils

In support of future margin expansion, ASOS has successfully launched Partner Fulfils in the UK in partnership with Adidas and Reebok, now accounting for 11% of Adidas total UK sales and 10% of Reebok total UK sales through the ASOS platform. This programme now consists of both a “depth model”, whereby product that is out of stock at an ASOS fulfilment centre is fulfilled directly to ASOS’ consumers via Adidas or Reebok, and a “width model”, whereby product that is incremental to the current range offered by ASOS is fulfilled directly by the partner brands. In September 2022, Partner Fulfils has been further expanded to Europe in partnership with Adidas and Reebok across Germany, France, Spain and Italy.

2.      Further development of the Premier programme, the platform to grow loyal consumers

ASOS set out the importance of its Premier offer in driving increased customer loyalty and improved customer economics at its Capital Markets Day (‘CMD’) in November 2021. ASOS optimised pricing in 10 markets outside the UK to offer a more tailored local Premier proposition which supported 12% growth in the global Premier customer base, with average order frequency of Premier customers c.3.5x more than an average ASOS customer. This is key to driving increased customer loyalty and engagement.

3.      Accelerating ASOS’ data infrastructure and capabilities

A key inhibitor to ASOS’ progress is the need for a stronger data organisation and improved data science capability. In the first half, ASOS completed a full data strategy plan focused on: developing a larger data product team; improving data governance to drive more value, enhancing the data architecture for future scalability and growing the Company’s data science capability. Whilst ASOS has made some progress in the second half, by expanding the data science and engineering teams and evolving its data architecture to support future growth and complexity, there remains more to be done in this space to truly transform ASOS into a digital organisation.

4.      Topshop growth shows the potential of ASOS’ own brands

Within the ASOS brands portfolio the Topshop brands have contributed to both revenue growth and gross margin expansion across all key territories 18 months on from the acquisition. Topshop brands posted strong sales growth of 105% year-on-year in FY22, with growth of more than 200% in the US supported by the wholesale partnership with Nordstrom. Topshop and Topman are now available online and in store in more than 100 locations in the US and Canada, also as a result of the Nordstrom partnership. At the group level, Topshop jeans are now the leading womenswear jeans brand on site, and the Topshop brands have also exhibited strong growth in the dresses category.

On 29 September 2022, ASOS launched the next chapter for Topshop and Topman. The new product collection marks the first season conceived and created entirely under ASOS ownership. To ensure a future-facing approach, ASOS has introduced the following: (i) a digital-first approach with a dedicated storefront, a first for ASOS; (ii) greater inclusivity through the launch of Topshop Curve, the first time the brand will be available from sizes 16 to 28; and (iii) a global approach through the continuation of the partnership with Nordstrom.

5.      ASOS collaborations show the value of its platform to Partner Brands

ASOS continues to offer a unique proposition to partner brands, enabling them to access new consumers and occasions. In the second half, ASOS has continued to partner in new ways to showcase relevant products to consumers. ASOS partnered with Netflix to deliver Reclaimed Vintage x Stranger Things, which launched on site to coincide with the release of season four of the hit Netflix series. The range was searched over 50,000 times and was a sell-out with 10,000 units sold. It resonated particularly strongly with ASOS’ female customers, who made up 87% of purchases with nearly half of those under the age of 25.

Within the sportswear category, ASOS collaborated with Nike to create a campaign highlighting best-in-class Nike footwear styled with a curated edit of ASOS Design, Topshop and Collusion clothing. This leveraged ASOS’ in-house creative and studio functions along with the ASOS Media Group to elevate the product through fashion-led campaigns, demonstrating ASOS’ unique offer to its partner brands. This campaign led to an uplift in Nike campaign line sales by 124% in the first week.

6.      ASOS X Nordstrom, a new growth formula for US

In July 2021, ASOS announced its strategic partnership with Nordstrom aimed primarily at building brand awareness and engagement in North America. ASOS Design has now launched in 14 stores in the US, with an expanded collection available on, alongside the launch of a Click & Collect option in Nordstrom stores for orders placed on This was further supported by the launch of two retail concept stores earlier in the year at The Grove in Los Angeles featuring the Nordstrom I ASOS Glass Box and the Nordstrom I ASOS Pop Up at The Grove aimed at building awareness for the ASOS brand.


Board Changes

Non-executive director, Eugenia Ulasewicz, has decided not to seek re-election at the Company’s next AGM and accordingly will step down from the Board at the conclusion of the Company’s AGM which is expected to be held on 11 January 2023.

Non-executive director, Luke Jensen, has decided not to seek re-election and will be stepping down from the board at the end of his term on 31 October 2022.

Jørgen Lindemann, Chair of ASOS, said:

"On behalf of the Board, I would like to thank Eugenia and Luke for their significant contribution to ASOS and we wish them well for the future."


 José Antonio Ramos Calamonte                                                               

 Chief Executive Officer                          

The conclusion of negotiations with the Company’s banking syndicate regarding a covenant amendment on its Revolving Credit Facility constitutes Inside Information.

The person responsible for arranging the release of this announcement on behalf of ASOS is Anna Suchopar, General Counsel and Company Secretary.


Investor and analyst meeting:

There will be a webcast for investors and analysts that will take place at 9.00am, 19 October 2022. To access live please dial +44 (0) 20 3695 0088 and use Meeting ID: 871 1643 5214 and passcode: 554693 . A live stream of the event will be available here

A recording of this webcast will be available on the ASOS Plc investor centre website after the event:

Forward looking statements:

This announcement may include statements that are, or may be deemed to be, "forward-looking statements" (including words such as "believe", "expect", "estimate", "intend", "anticipate" and words of similar meaning). By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances, and actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect management's view with respect to future events as at the date of this announcement. Save as required by applicable law, the Company undertakes no obligation to publicly revise any forward-looking statements in this announcement, whether following any change in its expectations or to reflect events or circumstances after the date of this announcement.

Background note

ASOS is a destination for fashion-loving 20-somethings around the world, with a purpose to give its customers the confidence to be whoever they want to be. Through its market-leading app and mobile/desktop web experience, available in ten languages and in over 200 markets, ASOS customers can shop a curated edit of nearly 70,000 products, sourced from nearly 900 of the best global and local partner brands and its mix of fashion-led own-brand labels – ASOS Design, ASOS Edition, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge and HIIT. ASOS aims to give all its customers a truly frictionless experience, with an ever-greater number of different payment methods and hundreds of local deliveries and return options, including Next-Day Delivery and Same-Day Delivery, dispatched from state-of-the-art fulfilment centres in the UK, US and Germany.

[i] Total revenue growth CCY excluding Russia of 4% (+2% CCY including Russia)

[ii] 1% reported revenue growth including Russia

[iii] RoW declined by 9% CCY excluding Russia and by 20% CCY including Russia

[iv] Active customers grew by 0.4m year-on-year to 25.7m excluding Russian active customers (flat at 26.4m including Russian active customers)

[v] RoW declined by 9% CCY excluding Russia and by 20% CCY including Russia

[vi] RoW KPIs quoted on an excluding Russia basis


Final results for the year ended 31 August 2022

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