ASOS PROFITS FALL 87 PERCENT

E-retailer giant ASOS is on the verge of reducing its staff, perhaps as a result of its declining profits recently. It was reported that the company is to reduce 100 job positions mainly in marketing. Its marketing division currently employees over 4000 people worldwide. While the first quarter of 2019 looked good for ASOS, with a total sales growth of 14 percent and retail growth at 13 percent, the e-giant's profits are actually in decline. Falling, before tax, 87 percent compared to the same period in 2018.

"We grew sales by 14% despite a more competitive market. ASOS is capable of a lot more. We have identified a number of things we can do better and are taking action accordingly," explained Nick Beighton, ASOS CEO.

ASOS has said that their performance was impacted by large scale transformational projects. "We are confident of an improved performance in the second half and are not changing our guidance for the year," Beighton added. "We are nearing the end of a major capex programme. Whilst this has inevitably involved significant disruption and transition costs, the global capability it now provides us gives us increased confidence in our ability to continue to capture market share whilst restoring profitability and accelerating free cash flow generation. Global online fashion is a growing, 220 billion British pounds market. We now have the tech platform, the  infrastructure, a constant conversation with our growing customer base who love our own great product and the constantly evolving edit of brands we present to them. We believe that ultimately there will only be a handful of companies with truly global scale in this market. We are determined that ASOS will be one of them."