|
Asos PLC on Wednesday said it intends to shut down its US warehouse in Georgia, as part of its ongoing effort to increase operational efficiency. From the second half of 2025, US customers of the London-based online-only fashion retailer will now be served from Asos’s automated UK fulfilment centre in Barnsley, South Yorkshire, and a smaller local US site which opened in 2024. ‘This will offer Asos’ US customers an enhanced product offering, including a broader assortment and faster speed to market of the best and most exciting product, while offering competitive delivery speeds and lowering the total fulfilment cost per order,’ the retailer said. Asos will ‘mothball’ its Atlanta distribution centre in its second half and will formally market the site following the completion of a multi-year warehouse automation project. The move will affect seven US staff directly employed by Asos, who will be offered alternative roles where possible, while third-party logistic partners will ‘make efforts’ to redeploy ‘several hundred’ employees to nearby sites. The retailer said it expects the changes to its global distribution network to generate between £10 million and £20 million in annualised earnings before interest, tax, depreciation and amortisation benefit from financial 2026 onwards. In its 2025 financial year, Asos expects the impact on adjusted Ebitda to be ‘broadly neutral’, but it anticipates around £190 million in adjusting items to hurt its reported profit. Asos re-iterated all other 2025 and medium-term guidance, setting its forecast for the US market to generate around 8% in adjusted Ebitda margins in the medium-term. Asos said: ‘Having successfully transformed the US into a profitable market over FY24, Asos sees further opportunity to re-invest in the areas that matter most to its customers by optimising its global distribution model.’ Shares in Asos were up 4.6% at 397.80 pence each in London on Wednesday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
