Asos Profits Tumbled 68% In A ‘Disappointing’ Year. What Happened?

by MR Magazine Staff

“Digital is highly complex. Few have cracked it. Fewer have even made a profit,” were the words of Asos founder Nick Robertson in October 2013. Six years later, Asos latest earnings show the online retailer is still trying to crack the code. The firm, once a market leader among digital-first fashion companies, has seen its profits tumble and revenue growth slow down as it emerges from a “difficult year” of operational challenges and attempts to expand in the U.S. and EU, simultaneously. When Robertson, along with co-founder Quentin Griffiths founded the fashion giant as As Seen On Screen in 2000, they envisioned a world where their customers could access a mass of their favourite brands on one slick platform. But with that ambition, and recent plans to scale it internationally, came problems that resulted in profits slumping 68% to $42 million (£33.1 million) in the year to August 31, from $130 million (£102 million) in 2018. Read more at Forbes.