// Asos bosses have missed out on bonuses for the second consecutive year
// The revelation was made in Asos’ annual report yesterday
// It comes after Asos’ full-year profits dropped 68% to £33.1m
Asos bosses were not given bonus payouts for the second year in a row after the online retailer recorded a significant drop in full-year profits.
Asos’ pre-tax profits have plunged by 68 per cent to £33.1 million in the year to August 31, despite sales increasing 13 per cent year-on-year to £2.73 billion and online orders rising 15 per cent year-on-year to 72.3 million.
In a year that has seen the online fashion retailer issue two profit warnings, Asos chief executive Nick Beighton attributed the drop in profits to “significant” investment in its warehousing and the “regrettably more” disruptions than expected that came with it.
As a result of missing targets, in Asos’ annual report published yesterday it was revealed that directors received no annual bonuses for year.
The annual bonus opportunity for the current financial is still 150 per cent of salary for the chief executive and 100 per cent of salary for the chief financial officer.
Beighton was paid a base salary of £565,000 for the year to August 31, with a total remuneration payout of £796,921.
The warehouse investments that Beighton referred to in the annual report included the launch and expansion of two new warehouses in the US and Germany.
Asos also spent more money on sustainability, customer acquisition and customer retention strategies.
As a result, the online retail giant struggled to stay on top of demand and heavy investments impacted profits.