Asos, the online fashion retailer, has announced the departure of its CEO, Nick Beighton, and has warned that rising costs and supply chain disruption will harm profits.
Beighton, 54, has been in the position for six years and has been with the company for 12 years.
The fast-fashion retailer announced that a search for a replacement had begun. Mat Dunn, chief financial officer, will also serve as chief operating officer and will oversee the day-to-day operations of the company.
In addition, the company announced that Ian Dyson would succeed Adam Crozier as chairman. Crozier announced in August that he would be leaving to become chairman of BT the following year.
According to Asos, the executive changes are intended to "underpin the delivery of the next phase of its global growth strategy." Beighton had indicated that he would be unable to commit to staying for the duration of the company's five-year plan to accelerate its international expansion, according to the company.
"When I joined, there were fewer than 200 people, and we had annual sales of around £220 million," Beighton explained. I leave a company with a nearly £4 billion turnover and over 3,000 fantastic Asos-ers serving 26 million customers in 200 markets around the world."
In its annual results, which were released on Thursday, the company stated that "significant cost headwinds" would affect the group this year, including rising freight costs and labour cost inflation.
Pre-tax profits are now expected to range between £110 million and £140 million, according to the retailer. Profits of £186 million were predicted by analysts.
Pre-tax profits increased by 25% to £177.1 million in the year to the end of August, up from £142.1 million the previous year, on revenue that increased by 25% to £3.91 billion.
Asos, which caters to fashion-conscious twentysomethings, was founded in 2000, at the height of the dot-com boom. It was one of the pandemic winners, with sales and profits skyrocketing as a result of the switch to online shopping during lockdowns. However, the retailer issued a warning in July that the volatility of Covid restrictions was affecting its sales growth.
The shares, which have dropped by more than 40% so far this year, fell by 15%, or 410p, to £23.71 this morning.
In addition, the company has postponed plans for a so-called capital markets day on Thursday, when it planned to brief investors and analysts on its long-term plans.