Asos promises “culture reset” as it tries to turn itself around

Asos reckons its mostly young clientele – many of whom live with parents so don’t pay mortgages or fuel bills – should manage the cost-of-living crisis better than most.

But the new CEO Jos é Antonio Ramos Calamonte still has plenty of problems.

It plunged to a loss of nearly £10 million for the year as the online fashion retailer struggled with a tough consumer climate and troubles with its own finances.

The fast fashion firm has been in talks with lenders over a £350 million loan deal as it strives for more flexibility in uncertain financial times. It says that deal with banks is secure at least.

Today it said sales for the year to August had held up well, up slightly at £3.93 billion suggesting the business retains its core popularity among young internet shoppers.

Andrew Busby at Software AG said times are bleak for retailers.

“Across the industry, we are seeing a significant increase in returns from consumers. To combat this, brands need to consider the ways they can be more transparent about the impact of purchases and returns and take steps to reduce it.”

Asos made profit before tax of £22 million, about what the City was expecting. But an overall operating loss.

CEO Jos é Antonio Ramos Calamonte said: "ASOS is a strong business with a compelling brand, customer offer and fashion credibility, with dedicated and passionate employees. Against the backdrop of an incredibly challenging economic environment, this unique combination has enabled our business to deliver a resilient performance this financial year in the UK - but I know we as a Company can achieve far more.”

Asos was once a darling of the stock market, but its shares are down 90% this year. They rallied today, up 12% at 548p, which leaves the business valued at £550 million, a far cry from former glories.

It plans cost cuts and cuts to stock levels, which it hopes will reduce losses next year. Its brands include TopShop and Miss Selfridge.