Asos delivered revenue growth of 4% in the six months to 28 February, and an adjusted profit before tax of £14.8m. This marks an 87% drop in profit since last year.
After delivering a 30% increase in profits over the last financial year, Asos has laid out the five strategic pillars it is banking on to drive further growth.
The online fashion retailer grew its sales by 24% over the first half of its financial year, after boosting digital marketing spend to raise brand awareness and drive traffic to the platform.
From a brand perspective, Asos is in much better health than the Arcadia brands it has acquired but buying up Topshop, Topman and Miss Selfridge will help it boost perceptions of quality.
Asos believes the Covid-19 pandemic and supply chain allegations at rival Boohoo make clear and transparent communication more important than ever.
Shortening the fashion industry’s global catwalk calendar would be a trendsetting statement of intent that shows the couture houses are ready to take responsibility for their environmental impact.
Asos has culled its print magazine after 12 years amid a wider crisis for the brand but, as other companies can testify, a well-produced print title can still be a highly effective promotional tool.
Another profit warning and Twitter flogging shows the former darling of the fast-fashion world has a lot of ethical and operational issues to address.
The online retailer is hoping an increase in the “velocity of conversations with customers” through an uptick in digital marketing and influencer activity will help turn round a slowdown in customer acquisition and website traffic.
From Asos’s wheelchair-friendly jumpsuit to Starbucks opening its first sign language store, brands are making moves to cater for people beyond the mainstream and unlock the potential of the ‘Purple Pound’.
Asos boss Nick Beighton says there has been an “unprecedented level” of discounting in the final quarter of the year, which caused the online retailer to issue a profit warning to the stock market this morning.
A-List didn’t fail because it was a Z-List scheme, rather it shows online-only retailers can engender customer loyalty with a focus on customer experience, rather than rewards.
While Asos would rather keep consumers on its own site, CEO Nick Beighton said he is open to experimenting with new ecommerce channels, including Instagram Shopping, over the next 12 months.
As sites such as Instagram roll out buy buttons, the online retailer’s CEO admits social could be a “drag” going forward and that their impact isn’t straightforward.
The fashion brand’s head of marketing analytics says brands should not prioritise targeting as a strategy and ignore reach.