Asos has warned it will be expecting lower profits this year after a rise in shoppers returning clothes amid the pressures of higher living costs.
The online giant lowered forecasts for the year, with sales anticipated to be in the range of four per cent and seven per cent, which it put down to “market volatility and an increased returns rate.”
The retailer also announced this morning that José Antonio Ramos Calamonte has been appointed Chief Executive Officer and Jørgen Lindemann as Chairman.
Ramos Calamonte, who is currently Chief Commercial Officer at the business will become CEO and a member of the Asos Board with immediate effect.
José is an experienced international retail expert, having led on commercial strategy for brands including 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 Chief Executive Officer for nearly two years.
The business said that while gross sales had sped up with shoppers keen to buy occasion wear post-pandemic, net sales had been hit by a “significant increase” in returns rates in the UK and Europe towards the end of the three months to 31 May 2022.
Asos posted revenue growth of four per cent, compared to a previous growth rate of 47%, reflecting the increased return rate, it said.
According to Asos, Calamonte has made a significant impact since joining to head up the commercial function at the start of the year, taking responsibility for driving Asos’ product and trading strategy globally, encompassing design, sourcing, garment technology, buying and merchandising, global trading and more
Jørgen Lindemann, who joined the Asos Board as a non-executive director on 1 November 2021, will become Chairman, succeeding Ian Dyson, with effect from 1 August 2022, when Ian will step down.
Asos Chair Ian Dyson said: “José is the right person to lead Asos through the next phase of growth and the Board is delighted that he is becoming CEO at such an important time. 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.”
José Antonio Ramos Calamonte added: “I joined Asos because it is a business I had admired for a long time. I am excited at the opportunities ahead and look forward to working with the Board, the rest of the executive team and all our Asos colleagues to deliver every day for our customers around the world and to create sustainable long-term value for all stakeholders.”
Jørgen Lindemann said: “The Board of Asos is clearly focused on ensuring we continue to make progress against our strategy, in spite of the unprecedented external challenges the business is facing. I look forward to working with José and the rest of the team to ensure delivery against our stated ambitions.”