ASOS saw its profits crash following warehouse issues, the online fashion retailer revealed on Wednesday.
Shares in the company (LON:ASC) were up during trading on Wednesday morning.
In its final year results to 31 August, the online fashion retailer announced a 68% crash in profit before tax, amounting to £33.1 million in comparison to the £102 million figure recorded the year prior.
However, retail sales were up 13% on the previous year.
The online fashion retailer said that performance in dresses was strong, particularly with animal print, broderie and satin styles “really resonating”.
As for menswear, trends such as neon and utility were successful, as well as the return of the casual trouser through cargo pants.
ASOS posted yet another profit warning in July, as well as a shock profit warning last December in the run-up to Christmas.
“This financial year was a pivotal period for ASOS, where we have invested significantly and enhanced our global platform capability to drive our future growth,” Nick Beighton, CEO of ASOS, commented on the results.
“Regrettably this was more disruptive than we originally anticipated. However, having identified the root causes of our operational issues, we have made substantial progress over the last few months in resolving them,” the CEO continued.
“Whilst there remains lots of work to be done to get the business back on track, we are now in a more positive position to start the new financial year,” Nick Beighton said.
“Our focus now shifts to ensuring that we enhance our capability to drive an improved customer experience and leverage the benefits from the investments we have made. With over 60% of our revenue coming from international customers and a strong global logistics platform with capacity to grow, we are well positioned to take advantage of the global growth opportunity ahead of us.”
ASOS added that its recent collaboration with Ovie from Love Island was particularly successful. The Love Island star provided both an ASOS Design style edit of his favourite pieces and also a design collaboration on an exclusive range, ASOS said.
❗️Message: it’s National Ovie Day❗️
We’ve enlisted @OvieSoko to put together an edit full of his fave ASOS AW19 pieces, from utility gilets to smart tailoring. Check out his picks and keep an eye out for more news – it’s not Ovie yet… pic.twitter.com/TULp9YvYtP— ASOS (@ASOS) September 16, 2019
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Shares in ASOS plc (LON:ASC) were trading at +18.44% as of 10:25 BST Wednesday.