Asos looks to double profitability following Beighton's shock exit

Online retailer Asos told investors at its capital markets day event on Wednesday that it was aiming to double its profitability in the long-term as part of an effort to right the ship after the abrupt departure of former chief executive Nick Beighton.

Over the course of the next three to four years, Asos said it was targeting £7.0bn in sales, equating to a compound annual growth rate of 15-20%, and an underlying earnings margin of at least 4%, underpinned by operational excellence initiatives of £50.0m to £100.0m.

Looking further ahead, Asos stated it was "confident" that strong sales growth could be sustained over the long-term and that margins could be "significantly enhanced" in all territories, leading it to forecast a profit margin of at least 8%, doubling its existing medium-term goal on the back of increased cost and scale efficiencies.

Asos stated that it sees "significant further growth potential", with a total addressable market of £430.0bn by 2030 in the UK, US, Europe and core territories in the rest of the world, and also highlighted that its own brands, enhanced by the AIM-listed firm's recent acquisition of the Topshop brands, were "an important global customer acquisition tool", with 60% of new customers putting an Asos brand in their basket.

As of 1045 GMT, Asos shares were up 3.38% at 2,661.73p.