Asos returns to profit as cyber attack ‘not a big thing’

Asos has returned to profit after a cyber attack last month, according to its chief executive José Antonio Ramos. The London-listed retailer paused some marketing and customer-related activities, resulting in a short-term disruption to trading estimated at 2-4% of its gross merchandise value (GMV) in October. The impact on sales was valued at £4m to £8m. Ramos expressed confidence that the turnaround efforts have not been derailed by the attack, stating, "I don’t think that it is such a big thing, to be honest."

Ramos has been leading efforts to reduce Asos's stock, simplify the supply chain, and boost margins since taking charge in June 2022. The group posted a £24.4m pre-tax profit in the year to the end of August, compared to a £282m loss in the previous year. Adjusted loss before tax was £46.4m, better than the £61m forecast by analysts, with revenue dipping 9% to £2.2bn.

Asos has pivoted towards growth, building on progress made through transformation. The fast-fashion seller expects to implement a new 'Stylist' tool powered by AI, which will create a personalized store experience for each customer, reflecting their wardrobe and style. The company reassured customers that their payment details were not accessed during the breach.

Ramos highlighted that Asos is confident it is in a better position to prevent future cyber incidents, having taken appropriate measures in collaboration with cybersecurity experts.