Latest news with #RamosCalamonte
RTÉ News
24-04-2025
- Business
- RTÉ News
ASOS confident on growth amid tariff uncertainty
British online fashion retailer ASOS is well-placed to cope with the fallout from US tariffs, it said on today, and while it was too early to call, its flexible model and lower exposure to sourcing from China could help drive growth. ASOS posted higher half-year earnings today, showing that a plan to rebuild the retailer's fast fashion credentials with its 20-something customer base was starting to work, though it now faces new upheavals from tariffs and trade turmoil. Britain is ASOS's biggest market, but the United States accounts for about 10% of total sales. Asked about the impact of tariffs, CEO José Antonio Ramos Calamonte said there were a lot of moving parts with changes almost daily, and details remained unclear. "The answer always has to be flexibility and adaptability," he told reporters, adding that ASOS was better placed than its competitors as less than 5% of its own-brand sales in the US come from products made in China, which faces the highest US tariffs. Ramos Calamonte said ASOS's source markets are spread across Morocco, Turkey, Eastern Europe and Britain, adding that in total about 25% of its own-brand garments come from China. In recent years, ASOS has faced intensifying competition from Chinese-founded giant Shein and China's Temu in both its home market and the United States. However, President Donald Trump's high tariffs on Chinese goods imported into the United States and shifts in customs policy on direct shipments to consumers in Britain and the US could now give ASOS an advantage. Britain said on Wednesday it would review the customs treatment of low-value imports exempting goods worth 135 pounds ($180) or less from duties, a system that has benefited Chinese retailers. The US administration has gone further, banning from May the waiver of customs duties on imported items worth less than $800 that are shipped to individuals from China and Hong Kong. Though ASOS ships products for US sales from Britain in individual packages after the company mothballed its US warehouse earlier this year, it will still face lower import levies than its Chinese competitors. Shares in ASOS were flat in mid-morning deals. For the 26 weeks to March 2, ASOS posted half-year adjusted earnings (EBITDA) of 42.5 million pounds, beating forecasts. It said it was on track for annual earnings to come in at between 130 million pounds to 150 million pounds.
Business of Fashion
24-04-2025
- Business
- Business of Fashion
Asos Confident on Growth Amid Tariff Uncertainty
British online fashion retailer Asos is well-placed to cope with the fallout from US tariffs, it said on Thursday, and while it was too early to call, its flexible model and lower exposure to sourcing from China could help drive growth. Asos posted higher half-year earnings on Thursday, showing that a plan to rebuild the retailer's fast fashion credentials with its 20-something customer base was starting to work, though it now faces new upheavals from tariffs and trade turmoil. Britain is Asos's biggest market, but the United States accounts for about 10 percent of total sales. Asked about the impact of tariffs, CEO José Antonio Ramos Calamonte said there were a lot of moving parts with changes almost daily, and details remained unclear. ADVERTISEMENT 'The answer always has to be flexibility and adaptability,' he told reporters, adding that Asos was better placed than its competitors as less than 5 percent of its own-brand sales in the US come from products made in China, which faces the highest US tariffs. Ramos Calamonte said Asos's source markets are spread across Morocco, Turkey, Eastern Europe and Britain, adding that in total about 25 percent of its own-brand garments come from China. In recent years, Asos has faced intensifying competition from Chinese-founded giant Shein and China's Temu in both its home market and the United States. However, President Donald Trump's high tariffs on Chinese goods imported into the United States and shifts in customs policy on direct shipments to consumers in Britain and the US could now give Asos an advantage. Britain said on Wednesday it would review the customs treatment of low-value imports exempting goods worth 135 pounds ($180) or less from duties, a system that has benefited Chinese retailers. The US administration has gone further, banning from May the waiver of customs duties on imported items worth less than $800 that are shipped to individuals from China and Hong Asos ships products for US sales from Britain in individual packages after the company mothballed its US warehouse earlier this year, it will still face lower import levies than its Chinese competitors. Shares in Asos were flat in mid-morning deals. For the 26 weeks to March 2, Asos posted half-year adjusted earnings (EBITDA) of £42.5 million, beating forecasts. It said it was on track for annual earnings to come in at between 130 million pounds to £150 million. ADVERTISEMENT Learn more: Asos Cedes Topshop to Denmark's Bestseller for $178 Million Asos is forming a joint venture with the family's Heartland A/S, which will pay £135 million ($178 million) for a 75 percent stake in the two brands the UK company acquired in 2021 from Philip Green's insolvent retail business as part of a £295 million deal.
The Independent
24-04-2025
- Business
- The Independent
Asos boss says retailer ‘resilient' as US tariffs loom
Asos has cheered early signs that its overhaul is paying off while US tariffs loom and the retailer braces for new charges on cheaper imports. The online fashion retailer said the first half of its financial year was the 'strongest sign yet' that its turnaround of the business was working. Its boss stressed that the firm was taking a 'flexible approach' to fast-evolving global trade policy. In particular, the company is set to be affected by US President Donald Trump's plans to scrap the 'de minimis' rule which means lower-cost goods shipped directly to US consumers are exempt from being charged customs duty. Plans to axe this rule, which is set to take effect from May, means orders below 800 dollars (£602) will face new charges. Asos's finance chief Dave Murray said it does not tend to have orders that are over that cap so 'it hasn't really come into effect yet', adding that the company's 'focus is making sure we have flexibility in our operations to continue providing our US consumers' with its products. Asos recently closed its US warehouse in Georgia, and instead handles orders from American consumers from its warehouse in Barnsley, South Yorkshire, as well as a smaller local site in the US. Jose Antonio Ramos Calamonte, Asos's chief executive, said that since this change, 'test and react' products had surged by 50% in the US, because they are available faster. The test and react model, which is prominent for fast-fashion retailers like Shein, sees small batches of new-trend products brought to market more quickly. Mr Ramos Calamonte said that regulation was changing 'daily' with many details still unclear, meaning that the business was focusing on being 'flexible and agile' as well as its approach. He also said the firm was 'not that deep into China' with about 5% of US sales of its own-brand products generated in China. The escalating trade war between China and the US has seen Mr Trump confirm a 145% tariff on Chinese imports, while China reciprocated with a 125% levy on US imports. 'We have a very widespread supply chain… we are pretty resilient because we have a lot of different sources,' Mr Calamonte said, citing producers in northern Africa, Turkey, continental Europe, and the UK. Meanwhile, Asos reported revenues of £1.3 billion for the six months to March 2, declining 14% compared with the same period last year. It also warned that revenues were expected to come in at the 'bottom end' of its guidance range for the full year, which means sales could drop by as much as 9%. The decline has been driven by the platform clearing a build-up of stock and slashing the number of discounted items, focusing instead on selling products and new ranges at full price. Asos's own-brand products, sold at full-price, returned to growth during the period, while sales of its Asos Design range jumped by nearly a tenth in the UK. 'Our own-brand is doing better than our brand partners,' Mr Ramos Calamonte said. 'That is not a surprise, to be honest. We knew that, from the very beginning, in our new commercial model our own brands were going a little bit faster than our brand partners.' However, he said some ranges were 'selling really fast' such as collaborations with Adidas and New Balance, while Asos plans to add new brands to the platform like Good American and Pharrell Williams' Ice Cream label. The group narrowed its pre-tax losses to £241.5 million for the half-year, from £246.8 million a year ago. On an adjusted basis, earnings before interest, taxes, depreciation and amortisation (EBITDA) swung to a £42.5 million profit, from a £16.3 million loss the prior year.
