ASOS, the British online fashion retailer has reported a 14% drop in revenue in its latest quarter, but said its strategy was working as it returned to profitability.
The group led by CEO José Antonio Ramos Calamonte announced an overhaul of its business model last October after the economic crunch and a string of operational problems hammered its profits. He is prioritising profit over top-line growth.
ASOS said core earnings (adjusted EBIT) rose more than 20 million pounds in the three months to May 31, its fiscal third quarter, with EBIT margin up 250 basis points.
The group, whose shares have lost 71% of their value over the last year, had already said last month that sales had fallen about 15% in March and April when it reported a first half loss and guided to a "low double digit" sales decline for the second half.
The group kept its forecast for second-half adjusted EBIT of 40-60 million pounds.
