All eyes will be on inventory levels and management’s commentary around current trading when ASOS (ASC) puts up full year figures on 25 October. While the online fast-fashion seller’s turnaround strategy is progressing, early success has yet to show up in the numbers with the retailer’s youthful customer demographic strapped for cash and ASOS slashing prices to fend off stiff competition.

Chinese fast-fashion seller Shein is gorging on market share while arch-rival Boohoo (BOO:AIM), which shares a common shareholder with ASOS in Mike Ashley’s Frasers (FRAS), isn’t going away. Meanwhile, the rising presence of third party brands on the platforms of Marks & Spencer (MKS) and Next (NXT), the latter agreeing a £100 million takeover of FatFace, has only increased consumer choice.

In a post close update (26 September), ASOS flagged a 10% decline in total revenue for the year ended 3 September 2023, with fourth quarter sales down 12% as wet July and August weather put the dampeners on summer clothing demand. And despite delivering £300 million of profit improvement and cost savings, ASOS’ second-half free cash flow and gross margin guidance fell short of expectations.

Reducing inventory levels remains the key focus for management, since this generates the cash needed to implement the recovery strategy and drive down net debt, though May’s fundraise and refinancing has provided breathing space. [JC]

UK UPDATES OVER THE NEXT 7 DAYS

FULL-YEAR RESULTS

23 October: Smart Metering Systems

24 October: Scancell Holdings, Softcat

HALF-YEAR RESULTS

24 October: Baillie Gifford China Growth Trust

25 October: SCS Group, ASOS

26 October: Bloomsbury Publishing

TRADING ANNOUNCEMENTS

20 October: InterContinental Hotels Group, Record

24 October: Barclays, Travis Perkins, Bunzl

25 October: Fresnillo

26 October: Inchcape, WPP, PPHE Hotel

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