Future Of British Business
Asos New CEO Unveils Restructuring Plan to Weather Inflation
- Online retailer to cut stock, spending and slown automation
- Company ‘confident’ Asos can weather consumer uncertainty
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Asos Plc’s new chief executive officer laid out an extensive plan to reduce stock, slow automation and cut spending in an effort to survive as consumers retrench.
In a sign of the challenges facing Jose Antonio Ramos Calamonte, who took the helm at the British fast fashion chain in June, Asos will take a one-time hit of as much as £130 million ($147 million) while free cash flow this fiscal year will be zero at best. The company expects a first-half loss but said things should then improve without giving profit guidance for the year.