The past few months were quite challenging for the online shopping giant Asos. The firm saw
its profits decrease by 87% which clearly shows that they were not generating
enough sales. The chief executive Nick Beighton has asserted that “there were a
number of things we can do better”.
Asos revealed that it has identified areas where it can improve
and it is taking action to do so. One of the problems for the firm is its major
investments in new technology and
infrastructure. This has cost a lot of funds and has led to considerable
disruption as it moved systems. Moreover, Beighton advanced they had not
ordered large enough quantities of the most in-demand products. For instance,
they should have stocked more animal print skirts because these items are very
popular. They also experienced losses because of heavy discounting.
As such, profits decreased from £39.9million to just £4 million.
However, group sales increased by 14 per cent to £1.3billion and this is a good
sign. Nick Beighton is determined to prove to investors that the firm’s
growth story is not over yet. They are working to generate more sales and to expand
the business. He asserted, “‘Asos
is capable of a lot more”.
Asos
is working on generating more sales
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