Despite posting an eyewatering £120m loss this week, Asos boss José Antonio Ramos Calamonte praised the performance of its Topshop, saying he was “very, very happy” with the brand.
Calamonte said the ex-high-street staple “is still outperforming the average overall brand” at the online fashion giant.
At the end of 2023, rumours circulated over a possible sale of the brand, with Shein mulling a possible bid as well as PrettyLittleThing founder Umar Kamani and Authentic Brands Group.
While Calamonte remained tight lipped about a potential sale, he stressed that Asos is “ramping up marketing overall as a destination with Topshop obviously being part of that”.
Asos snapped up Topshop for £330m back in 2021 from Sir Philip Green’s collapsed Arcadia retail empire.
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Calamonte’s comments come as Asos adjusted pre-tax losses widened to £120m in its half year to 3 March as sales plummeted 18% amid its turnaround plan.
Despite this, the etailer reiterated its full-year guidance of a revenues fall of between 5 to 15% alongside positive adjusted EBITDA.
Asos moves away from discounting
The online retailer’s boss admitted that Asos had been hindered by its reliance on promotional activity in recent years.
His turnaround plan sees the retailer move away from promotions. Calamonte stressed: “Asos was always a place for fashion, not a place for discounts”.
“What we’re doing is going back to the origin of attracting consumers because we offer them something that is exciting in itself, not because it’s discounted…We are progressing in that journey – 60% of what we sell is out of promotion.”
Meanwhile, the fashion boss revealed it has been looking for alternative shipping routes due to delays amid the ongoing conflict in the Red Sea, and “has been investing into flying merchandise to solve the situation with our brand partners”. However, he emphasised that the effect on its margins have been minimal.
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