Asos Shares Fell 7.62% On Despite Positive Leadership Changes

The ASOS plc (LON: ASC) share price fell 7.62% after revealing that it will announce its interim results on 10 May 2023. The results will also include an update on its operations during March and April, which should give investors significant visibility into the firm’s finances and operational success. 

The online fashion retailer also issued an update about the changes it has been making to its leadership recently. The company had identified twelve critical areas that needed competent leaders to help the company grow and remain competitive in the cutthroat fashion industry. 

Asos reported that it had filled about 75% of the positions out of a 12-person team that would lead various departments, including its Product, Marketing, Creative, Technology, Supply Chain, Trading, People, Strategy, Finance, and Communications functions. The team will be in charge of implementing the retailer’s Driving Change initiatives. 

Investors ignored the progress made by Asos in recruiting the new leadership team as outlined in its full-year results released on 19 October 2022. The company also revealed that it had appointed Sean Glithero as interim CFO to take over when Katy Mecklenburgh leaves in May. 

ASOS is taking its time hiring new leaders to ensure that they are an excellent fit for the company in the rapidly changing retail fashion sector. The company is still in the process of hiring a new substantive CFO and is not in a hurry to fill the position, as evidenced by the appointment of an Interim CFO two months before the current CFO leaves. 

The decline in the Asos share price can be attributed to external factors such as negative investor sentiment towards retailers in general, maybe due to the high inflation and cost of living crisis in the UK, which triggered a decline in the retailer’s sales during the last quarter of 2022. 

ASOS has been working hard to reposition itself as the retailer of choice for its target customers by repositioning its inventory profile, simplifying its business and reviving its operational model in key markets. The retailer has also reduced its cost base to increase its profits. 

*This is not investment advice. 

Asos share price. 

The Asos share price fell 7.62% to trade at 841.6p, from Thursday’s closing price of 911.0p.