ASOS CEO Quits As Profits Set To Plunge

ASOS, the British online fashion giant announced its CEO is leaving with immediate effect as it warned rising costs are set to hit its profits.

Nick Beighton, aged 53, has been in the role for six years, but would "remain available" to advise the board for the rest of the year. Asos, which was founded in 2000, said that Beighton and the board have decided now is the right time for him to leave.

The surprise announcement came as Asos warned rising logistics and other costs could cut profits by upto 40% next year.

Beighton said: “When I joined, there were fewer than 200 people and we had annual sales of around £220m. I leave a business reporting turnover of almost £4bn, with more than 3,000 fantastic ASOS-ers delivering for 26 million customers in 200 markets around the world.”

The updates came as Asos revealed group sales in the year to August 31 increased by 20% to £3.9 billion, although shares are down 42% over the past year and fell another 14% as a result of the news.

The recent warning of lower profits in the near future overshadowed its results for the year to 31 August, which showed sales soared 22%, including "exceptional growth" of 36% in the UK.

Asos also said last year's profits had included a "Covid-19 benefit", worth £67.3m, as consumers returned fewer clothes.

The expected fall in profits are partly due to increased freight costs, Brexit duty, outbound delivery costs and higher wages.