Asos boss quits after profit warning amid supply chain woes

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The CEO of online fashion retailer ASOS is stepping down after more than six years following a profit warning as the firm feels the effects of the supply chain crisis.

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In a statement released on Monday, ASOS said it has begun the process of finding a replacement for Nick Beighton, who joined the company nearly 12 years ago.

Chief Financial Officer Matt Dunn will hold on to Mr Beighton’s responsibilities until a successor is appointed.

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ASOS announced on Monday that adjusted profit in the fiscal year jumped 36 per cent to £193.6m on 31 August, despite the change.

But the online fashion giant, popular with twenty-somethings for its trendy and moderately priced clothing, is facing a tough year, with sales growth expected to decline.

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Adjusted earnings are projected to decline between £110m and £140m in the current fiscal.

ASOS, like many other businesses, from supermarkets to petrol stations, is being hit by the ongoing supply chain crisis.

The firm said “significant cost headwinds” such as rising freight costs bringing goods into the UK, Brexit tariffs, labor cost inflation, and outbound delivery costs are also responsible for the dismal forecast.

Apart from rising costs, the firm said it is also struggling to meet consumer demand as economies bounce back from the Covid lockdown.

Following the announcement, shares of ASOS in London fell up to 16 per cent, but as Monday morning progressed, it began to rebound.

In other board announcements, ASOS said Ian Dyson would replace Adam Crozier as chairman, who had previously announced his decision to step down.

Mr. Dyson will lead the search for the company’s new CEO.

Meanwhile, Jörgen Lindemann, president of Danish-based online fashion retailer Minto, joins ASOS’s board as a non-executive director.

Mr. Dyson said: “ASOS is a great business with a strong brand and a talented team, and I am proud to take over as President.

“My key priorities will be recruiting a new CEO to drive the business forward, as well as working with Matt Dunn and the rest of the executive team to deliver our compelling strategic plan.

“I am delighted to welcome Jörgen Lindemann to the team; he brings a deep experience of international digital-led businesses, which will complement existing board expertise.”

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Credit: www.independent.co.uk /

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