Asos has reported a 15 per cent revenue decline in its fourth quarter but said it is still in line with guidance.

The British online retailer announced that fourth quarter sales had dropped by 16 per cent in the UK, while the period saw a dip of seven per cent and 19 per cent in the EU and US respectively.

Asos added that while the fourth quarter got off to a strong start, it was followed by weaker performance in July and August.

It ultimately attributed the poor performance in the quarter, and particularly so in the UK, to wet weather.

Despite the declines, Asos still expects the period to be profitable, stating that it has now realised £300 million of profit improvement and cost savings in line with the financial year 2023 target set under its Driving Change agenda. It added that this had resulted in a rise in order profitability by more than 35 per cent year on year.

“Asos has delivered on the Driving Change agenda and as a consequence is a leaner and more resilient business twelve months after its launch,” said Asos chief executive José Antonio Ramos Calamonte.

The initiative focuses on reducing stock intake as a means of improving order profitability.

Calamonte continued: “We have reduced our stock balance by 30 per cent, significantly improved the core profitability of the business and generated cash against a very challenging market backdrop.”

In its ongoing bid to return to profitability, earlier this year, Asos raised £75 million via a share issue.

The move came after Asos announced a £290 million pre-tax loss following weak sales results across the six months to 28 February.

The online fashion retailer said that the loss includes a £128.2 million stock write-off and £49.4 million worth of property impairments and closure costs after it streamlined its head office and logistics footprint.

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