Daily Management Review

ASOS chief resigns amid slowing sales


Nick Beighton, CEO of British online clothing and cosmetics retailer ASOS, is stepping down from his post at the company, where he has worked for 12 years, including six years as chief executive.

According to the company’s press release, this and a number of other personnel changes are being made as part of the transition "to the next phase of its global growth strategy". The search for a successor is already underway. In the meantime, the day-to-day running of ASOS has been entrusted to chief financial officer Mathew Dunn, who will also act as chief operating officer.

At the same time, the company published the results for the fiscal year, which ended on August 31. The company's revenue rose 20% to £3.9bn, with gross profit up 15% to £1.8bn. 

Sales were up 19%, but ASOS management warned that sales should slow to 10-15% in the current half year amid supply chain problems, which made it "harder to meet consumer demand". 

In addition, the company reports higher costs in freight, post-Brexit duties, the cost of shipping goods outside the UK, and labour. ASOS shares have reacted to these forecasts with a 14 per cent fall. They have already lost 40% since the start of the year.

source: ft.com