Retailer to Reduce Stock Levels by 16% in FY24 and Prioritize Projects with Higher Returns
- Asos plans to mothball its Lichfield warehouse next year
- Mothballing will provide an annual cost saving of around £20m
- The warehouse first opened in 2019
- Stock levels reduced by 30% over the last year, with plans to reduce further by 16% in FY24
- Asos increased profit per order by over 30%
- CEO José Antonio Ramos Calamonte focuses on operational excellence and resource allocation
Asos is mothballing its Lichfield warehouse next year as part of cost-cutting measures, following a widening of losses in its latest full-year results. The move will provide an annual saving of around £20m and allow flexibility to sell or reopen the facility depending on capacity needs. The automated warehouse opened in 2019. Stock levels have already been reduced by 30% over the past year, with plans for a further 16% reduction in FY24. Asos has increased profit per order by over 30%, refinanced its balance sheet, and refreshed leadership. CEO José Antonio Ramos Calamonte emphasizes operational excellence and resource allocation. The company anticipates a second year of falling sales with a forecasted decline of 5% to 15% in FY24.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Asos’s plans to mothball its Lichfield fulfilment centre, cost savings, stock reduction, and operational changes. It also includes relevant financial data such as pre-tax loss and revenue decline. However, it lacks some details on the overall context of the company’s performance and market conditions.
Noise Level: 3
Noise Justification: The article provides relevant information about Asos’s plans to cut costs and improve operational efficiency by mothballing its second UK fulfilment centre and reducing stock levels. It also mentions the company’s financial performance and future sales forecast. However, it lacks in-depth analysis or exploration of long-term trends or consequences of these decisions on various stakeholders.
Financial Relevance: Yes
Financial Markets Impacted: Asos’s financial performance and cost-cutting measures impact the company’s stock value and operations
Financial Rating Justification: The article discusses Asos’s financial results, cost-cutting measures, and future plans, which directly affect the company’s performance and can potentially impact its stock value and operations in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
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