Asos boss quits after profit warning amid supply chain woes
Company earnings expected to slump by more than £100m in current financial year
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Your support makes all the difference.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.
In a statement released on Monday, ASOS said it had already begun the process of finding a replacement for Nick Beighton, who joined the company some 12 years ago.
Mat Dunn, chief financial officer, will take on Mr Beighton's responsibilities until a successor is appointed.
The change came despite ASOS announcing on Monday that adjusted profits jumped 36 per cent in the financial year ending 31 August, to £193.6m.
But the online fashion giant, popular with twentysomethings for its trendy and moderately priced clothes, faces a difficult year ahead with sales growth expected to slump.
Adjusted earnings in the current financial year are estimated to plummet by between £110m and £140m.
ASOS, like many other businesses from supermarkets to petrol stations, is being hit by the ongoing supply chain crisis.
The firm said “notable cost headwinds” such as rising freight costs bringing goods into the UK, Brexit duty, labour cost inflation, and outbound delivery costs are also to blame for the gloomy forecast.
In addition to rising costs, the firm said it is also struggling to meet consumer demand as economies bounce back from Covid lockdowns.
Following the announcement, shares in ASOS were down by as much as 16 per cent in London but began to rebound as Monday morning progressed.
In other board announcements, ASOS said Ian Dyson will become chairman, replacing Adam Crozier, who announced in August his decision to step down.
Mr Dyson will lead the search for the company's new CEO.
Meanwhile, Jorgen Lindemann, chair of Miinto, a Danish-based online fashion retailer, joins the ASOS 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 be taking over as chair.
"My key priorities will be recruiting a new CEO to take the business forward, at the same time working with Mat Dunn and the rest of the executive team to deliver our compelling strategic plan.
"I am pleased to welcome Jorgen Lindemann to the team; he brings deep experience of international digitally led businesses, which will complement the existing board expertise."
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