even as the company grapples with plummeting sales Critics and industry observers have called this decision a "spectacular failure" and questioned the board's judgment in approving such a lucrative reward during one of the company’s most challenging periods Ramos Calamonte’s total compensation jumped from £814,000 to £1.17 million This hefty raise comes against the backdrop of a financial tailspin: the company reported a pre-tax loss of £379.3 million for the fiscal year ending September 1 up from a £296.7 million loss the previous year signaling continued struggles to regain momentum Once a high-flyer during the COVID-19 pandemic Asos shares have plummeted by 90% since their peak in 2021 adding to investor dismay and raising questions about the board's decision to reward top leadership During the height of the COVID-19 pandemic Asos thrived as consumers shifted to online shopping establishing itself as a leader in the fast-fashion e-commerce space the post-pandemic landscape has proven far less favorable customers flocked back to brick-and-mortar retailers benefiting competitors like Zara and H&M Adding to its woes is the rise of agile digital competitors such as Shein The Chinese fast-fashion giant has rapidly captured market share offering cheaper products and faster turnaround times Despite efforts to accelerate its own design-to-manufacture pipeline Asos has struggled to match Shein’s efficiency and pricing leaving it vulnerable in the ultra-competitive fast-fashion market Asos’s financial struggles have led to tough decisions on staffing the company has reduced its workforce by around 300 employees with some employees raising concerns about working conditions and a lack of union recognition voiced sharp criticism of the CEO’s pay raise: “It is disheartening to witness Asos executives pocketing enormous paychecks while employees face job losses and the company’s share price tanks This is a stark example of rewarding failure and there must be an inquiry into how this was approved by the board.” In an effort to regain its competitive edge Asos has doubled down on its ultra-fast-fashion model aiming to shorten production cycles and quickly capitalize on emerging trends While this strategy might help counter competition from Shein and other rivals it has also drawn criticism for its environmental implications Fast fashion is notorious for generating excessive waste as many garments are discarded shortly after purchase This approach contrasts with growing consumer demand for sustainability and ethical practices potentially alienating eco-conscious shoppers Critics argue that Asos’s emphasis on speed and volume may provide short-term benefits but risks long-term damage to its brand reputation Asos maintains that its executive compensation aligns with industry standards and strategic goals A spokesperson for the company defended Ramos Calamonte’s pay increase is sanctioned by the board and is aligned with industry standards and the achievement of key strategic goals Asos has made significant strides in transforming the business over the past year.” The spokesperson highlighted improvements in the company’s product lineup and profitability citing positive adjusted earnings and enhanced free cash flow as signs of progress Not everyone is convinced by Asos’s optimism Analysts at Panmure Liberum have likened the company’s turnaround efforts to “catching a falling knife,” underscoring the difficulty of stabilizing operations amid declining sales and intensifying competition Many view the CEO’s raise as emblematic of a disconnect between leadership and reality especially given the dire financial circumstances Some shareholders are now calling for greater accountability and transparency in executive compensation practices Asos must address several critical challenges: Related: EU Launches Major Investigation into Chinese Retail Giant Temu Over Potential Regulation Breaches Asos’s predicament serves as a cautionary tale for the retail sector The rapid rise and fall of the company highlight the dangers of relying too heavily on favorable market conditions without adequately preparing for long-term challenges Can the company evolve to meet the demands of a changing market or will it remain a symbol of fast fashion’s fleeting success but one thing is clear: without significant changes Register to Drapers to read ONE FREE article and a FREE digital edition Asos has attributed the decision to award CEO José Antonio Ramos Calamonte a 44% annual pay rise to £1.17m to "improved profitability" under his leadership despite the etailer's operating losses mounting to £331.9m in the financial year ended 1 September 2024 Calamonte was paid a total of £1.17m in the 12 months to 1 September up from £814,858 in the same period in 2023 The £1.17m pay package included an annual salary of £716,436 and £376,801 in bonus payments Asos’s full-year revenue fell by 18% to £2.9bn which the business attributed to weakened consumer demand and “tough” competition from more affordable fast fashion etailers and online resale marketplaces compared with £296.7m in the previous year An Asos spokesperson told Drapers: "All employee renumeration including bonus is approved by the board and based on industry benchmarks and achieving strategically important objectives Asos has made considerable progress to transform the business over the last 12 months "Product is in the strongest position it has been in for years while profitability has been fundamentally improved leading to the delivery of positive adjusted EBITDA [of £80.1m down 44% year on year] and significantly improved free cash flow [of £37.7m Recent months have seen retailers including Dr Martens and Burberry waive leadership bonuses in light of underperforming profits, while Boohoo Group scrapped executive bonuses following backlash from shareholders In August, British casual wear retailer Crew Clothing sued former CEO David Butler over his £600,000 bonus Read more: Should under-performing brands scrap exec bonuses Tags White Stuff CEO Jo Jenkins is leaving the business after seven years… Footwear brand Skechers will be taken private after it agreed to be… Hugo Boss Group has reported a decline in EBITDA during the first… Get full access to all the fashion industry news and intelligence you need Browse the archive of more than 55,000 articles read the daily and weekly newsletters in full and gain priority access to Drapers events José Antonio Ramos Calamonte, who was appointed CEO in 2022, earned £1.17 million for the year to the 1 September, up from £814,858 in 2023. This included an annual salary of £716,436 and £376,801 in bonus payments The company has seen a 60% drop in the value of its stocks since Calamonte's appointment; including 8% this year “It’s staggering somebody can be so well rewarded for such spectacular failure,” Andy Prendergast “It’s nauseating to see fat-cat Asos bosses trousering a fortune while the share price tanks and workers lose their jobs Questions must be asked how this got past the board.” pay rises for UK employees have plateaued at 4% according to data from HR insights provider Brightmine HR should communicate the reason for executive pay rises that happen alongside cuts in other areas of the business spokesperson for think tank the High Pay Centre Speaking to HR magazine, he said: “In situations where executive pay rises are proposed despite financial struggles and workforce reductions HR must be transparent about the rationale.  “This might involve demonstrating exceptional leadership contributions unrelated to stock performance though such cases should be rare and communicated with caution.” Read more: BT chief who cut 55,000 jobs awarded £2.6m bonus HR should also communicate how executive pay rises contribute to long-term goals founder of global leadership consultancy Connect Three He said: “Even in tough times, it’s essential to communicate how a CEO’s leadership is paving the way for future success. Whether it’s through entering new markets, driving innovation, or enhancing your corporate culture these efforts are crucial for your long-term vision.  “This is especially important when the company may not be hitting the expected numbers in the short term, or has had to resort to job cuts. Highlighting wins and how you are working towards longer-term goals and ambitions helps justify compensation decisions.” A spokesperson for Asos told HR magazine: “All employee remuneration including bonus is approved by the board and based on industry benchmarks and achieving strategically important objectives.  Product is in the strongest position it has been in for years leading to the delivery of positive adjusted EBITDA and significantly improved free cashflow.” Read more: Centrica boss admits his £4.5 million salary is unjustifiable Performance management systems could help HR ensure employees and leaders are held equally accountable for the success of an organisation He continued: “Accountability should be a cornerstone of your company culture. By implementing a fair and consistent performance management system, you ensure that everyone, from executives to employees, is held to the same high standards and given a fair opportunity to be rewarded for performance.  “Regular reviews and constructive feedback are vital in maintaining this culture of accountability and fairness.” Governance frameworks could also help HR decide executive’s pay in relation with their performance “HR teams should collaborate closely with remuneration committees to ensure that executive pay structures are clearly linked to long-term sustainable company performance,” he suggested “This can include metrics like revenue growth “HR can help implement governance frameworks that hold executives accountable in a manner proportional to their influence on outcomes.  or tying a significant portion of pay to clear measurable turnaround goals can ensure accountability.” By 2024-11-18T17:18:00+00:00 The boss of fashion giant Asos has received an almost 44% pay rise amid a turnaround at the retailer following mounting full year losses Asos boss José Antonio Ramos Calamonte’s total pay jumped by 43.9% last year despite the fashion giant posting a loss of £379.3m during the period In the fashion retailer’s most recent annual report for the year to September 1 the figures show that Ramos Calamonte received a £1.17m pay package up from the £814,858 he received in the previous year The breakdown saw Ramos Calamonte take home an annual base salary of £716,436 as well as £376,801 in bonus payments and an annual one-off bonus of £361,585 He also received £15,216 from Asos’ long term incentive plan which is soon to be replaced by a new executive pay plan that is further aligned with its “ambitious growth plans” The bonus comes as Ramos Calamonte leads Asos through a turnaround which hopes to return the business to profitability Ramos Calamonte said the business has “solid foundations in place” and that he is “energised by the progress made so far” A spokesperson for Asos said: “All employee renumeration including bonus is approved by the board and based on industry benchmarks and achieving strategically important objectives “The product is in the strongest position it has been in for years leading to the delivery of positive adjusted EBITDA and significantly improved free cash flow.” Site powered by Webvision Cloud Here’s a full list of our subscriber benefits: Check if you already have access from your company or university By 2024-09-05T14:43:00 Asos surprised the City this morning with the announcement that it had offloaded a majority stake of the iconic Topshop and Topman brands to Heartland a holding firm of Danish fashion giant Bestseller Asos announced today that it had offloaded 75% of the Topshop and Topman brands to Danish fashion giant Bestseller which owns more than 20 brands including Jack & Jones and Vero Moda is Asos’ largest current investor and has around 2,800 retail stores in more than 30 countries internationally Already have an account? Sign in here I received two emails from ASOS this morning One to my professional inbox detailing new CEO José Antonio Ramos Calamonte's turnaround plan Not being particularly fluent in the language of emoji I'm not really sure what 🚨 means (what can I say I'm not exactly ASOS target market these days) but if you'd told me 12 months ago that ASOS would swing to a loss and post growth of just 1% in its coming financial year my reaction would probably have looked something like 😱 But this morning that's exactly what the young fashion giant, and former darling of the London Stock Exchange, did post for the year the year to 31 August 2022. Sales in the period had squeaked up 1% to £3.94 billion while it reported a loss of £31.9 million The sales growth was dragged down by the rest of world performance where sales were down 9% (largely due to pandemic-hangover delivery disruption) The UK was "resilient" with sales up 7% while the US was up 10% and Europe up 2% Not that any of these numbers were much of a 😱 today because the results had been telegraphed in a trading update last month and not even ASOS – a former rock-solid performer – could have been immune to the economic turbulence in the UK and beyond changing consumers priorities and the ongoing global supply chain turmoil It is far from the only fashion retailer to have been hit by these challenges which have dogged etailers in particular (though Ramos Calamonte has said he will not be looking to charge for online returns as his old employer Inditex has done with Zara) But there are some issues that have been somewhat self-inflicted at ASOS and there are many things that the business can do to shore itself up and position itself more positively for the future the former Inditex executive who took over the top seat at ASOS in June of this year Well my jolly 50% off emails may dry up as he's pledged to take a "differentiated approach" to stock mark-downs which doesn't just mean he'll be switching up the emojis but he'll be taking promo activity off-site where possible and will be focusing on more full price sales the business has estimated that it's going to have to write off stock to the tune of £100m to £130m in the coming financial year to free up warehouse space and wipe the slate clean He's not really happy with how marketing has been performing in general there has been insufficient focus on marketing in core markets and too much emphasis on short-term performance marketing (which sucks up 80% of the marketing budget) and not enough on long-term brand marketing It should also get on the front-foot when it comes to sustainable practice and the communication of it. A recent rap over the knuckles from the CMA (Competions and Markets Authority) over greenwashing was frustrating to see as ASOS has always held itself to a higher standard on matters of CSR than many of its rivals "[ASOS] must refrain from using vague language to market items as environmentally friendly or weak criteria to decide if products are sustainable." says Chris Daly CEO of the Chartered Institute of Marketing "We know that consumers are increasingly sceptical of brands’ sustainability efforts with our research finding that 63% believe many brands only get involved with sustainability for commercial - not ethical - reasons Building consumer trust in these challenging times is a prerequisite for sustained success so it’s essential that ASOS’ next steps are in the right direction," Daly adds Elsewhere Ramos Calamonte's action plan centres on four key areas which he sets out as follows: renewing its commercial model and improving inventory management; simplifying and reducing its cost profile; ensuring a robust and flexible balance sheet; and reinforcing the leadership team and refreshing the culture In parallel to that he will also be working on creating long-term value for its shareholders exactly how will the new chief tackle those four areas which will hopefully lead to a better outcome for shareholders 1 - Renewing its commercial model and improving inventory management Following the completion of the commercial reorganisation in FY22 changes in ASOS’ approach to merchandising and buying will be "accelerated in support of a more competitive proposition and tighter stock cover" will result in: a shorter buying cycle to enable a more relevant and better curated customer offer It will also take a more flexible approach to stock leverage its ASOS Partner Fulfils capability (whereby partners fulfil their own orders) and look at near-shoring more product using a "Test and React" model which sounds remarkably similar to rival Boohoo's "Test and Repeat" model (which relies on it producing much of its product in the UK) As previously mentioned it will also push stock clearance off-site where possible resulting in fewer markdowns and a higher rate of full-price sell-through 2 - Simplifying and reducing its cost profile: "the operating model has become inefficient" therefore ASOS will take action to improve order economics and ensure a sustainable level of profitability in all markets He has promised to coordinate this effort "with a clear focus on optimising our cost base and eliminating excess costs through increased controls" Earlier this week, ASOS had to respond to media reports that it was renegotiating its credit facility and that its lenders had appointed advisers to keep them appraised of developments with the renegotiation of core banking covenants with cash and committed facilities of over £650m at year end "Our future investment will be aligned with capacity requirements to ensure a more efficient allocation of capital while planned strategic investment in technology will be maintained in support of an improved customer experience," says Ramos Calamonte Ramos Calamonte will be simplifying decision-making processes to "encourage a culture of innovation and creativity across the business", while reinforcing the senior leadership team with strategic key hires. One recent key hire was a former Inditex colleague, Elena Martínez Ortiz, who has joined as design director for womenswear It will be interesting to see who else he brings on board to re-invigorate proceedings (a good brand marketer perhaps?) I have set out a clear change agenda to strengthen ASOS over the next 12 months and reorient our business towards the future short-term operational measures to simplify the business alongside steps to unlock longer-term sustainable growth by improving our speed to market strengthening our top team and leveraging data and digital developments to better engage customers," said Ramos Calamonte “On the basis of the actions I have set out today the team and I will work resolutely to emerge from these turbulent times as a more resilient and agile business – all the time guided by our purpose to give our customers the confidence to be whoever they want to be," he added will all of this deliver the much needed long-term value for its shareholders after shares slumped to a 12-year low of late but ASOS shares rallied by 12.25% today alone taking them back to 550p There's a long way to go – this time last year shares were trading at 2,715p – but that does at least indicate that the market gave the CEO's first major strategic announcement a 👍 and you don't need to be fluent in emoji to know that that's a good thing By clicking 'Get the Newsletter' below, you agree to receive the newsletter & marketing communications from theindustry.fashion. To find out more about our data sharing policy, please read our terms of use and privacy policy Please mark membership@theindustry.fashion (and membership@theindustry.beauty ifyou have signed up for both newsletters) a safe sender so your daily newsletter getsdelivered successfully to your inbox as some spam filters can be extremely sensitive Local authorities yet to establish source of infections of barber and 14 customers after group trip Health authorities in south-west Spain are investigating a cluster of Covid infections that erupted after a barber and 17 of his customers in a small town in Extremadura tested positive following a group trip to Turkey for hair transplants organised the three-day treatment visit earlier this month By last Thursday, 29 people in the town had tested positive for Covid – including Parada and 14 of the travellers – and 250 close contacts had been identified has been closed after a handful of cases were detected among students’ families Authorities have yet to establish the source of the infections but are looking into whether they can be traced to the coach driver who drove the men back from Madrid’s airport The travellers were tested for the virus after it emerged that the driver had tested positive last Wednesday the men had spent a week going about their lives as usual “This situation is not very positive for the town,” said Calamonte’s mayor “But we have to deal with it as best we can and carrying on working together.” Parada said he and the other travellers had followed all the health guidelines adding he thought it unlikely the virus had been picked up in Turkey because the health checks there were so strict “We didn’t go to Turkey on holiday – it was a medical trip, which is allowed by the foreign office,” he told the online newspaper El Español The barber said he and his customers were “fed up and angry” over some of the comments made on social media and said illegal parties were also responsible for spreading the virus “I don’t have Facebook but my colleagues tell me they’re pinning the blame on us and turning us into memes It’s really easy to criticise when you don’t know Parada said he hoped life in Calamonte would get to normal soon and that “the stress doesn’t make our hair fall out” By 2023-11-01T16:48:00 As Asos reported yet another trading period of deepening losses and declining revenue Retail Week explores if boss José Antonio Ramos Calamonte can put the brand back in fashion On the same day that Next upped its full-year profit guidance for the fourth time this year, Asos posted a loss before tax of £296.7m and a 10% drop in group sales to reach £3.54bn throwing into sharp relief the decline of the one-time darling of the pureplay fashion space Yesterday, José Antonio Ramos Calamonte, the new chief executive, laid out how he was going to improve things. It’s going to be a tough gig, and he knows it. Calamonte gave a “brutal assessment of Asos’s failings”, one analyst said. The online retailer looked like a “fish out of water,” said another. Calamonte’s list of challenges include: an “inefficient” supply chain; being “overstretched” in parts of the world and making insufficient returns in the United States; the need for a fire sale of unsold stock; a failure to exploit digital and data opportunities; not innovating quickly enough; and not investing sufficiently in As it rolls out a new look loyalty scheme and brings Topshop.com to life Asos is continuing its move away from performance marketing Asos has reaffirmed its intention to “rebalance” investment away from performance marketing towards brand and influencer strategies as sales at the ecommerce giant continue to slide The company reported a 13% fall in sales for the 26 weeks to 2 March 2025 to £1.3bn although pre-tax losses narrowed from £270m to £241.5m over the period Asos pointed to its positive adjusted EBITDA- up £60m year-on-year – which it said was “driven by a new commercial model and sustained cost discipline” CEO José Antonio Ramos Calamonte said the goal is to “be attractive for consumers” but in a way that is “sustainably profitable and resilient” He also claimed to be seeing “early signs” consumers are starting to “reconnect with Asos” Buy today to continue reading The retailer is combining its customer and commercial Asos claims to have removed inefficient spend from its paid search leading to an increase in media return on ad spend Asos’s executive vice-president of customer on the challenges he is facing in turning the fashion retailer into a more brand-led organisation – and why marketers shouldn’t take measurement tools as gospel Behavioural science does a good job of explaining why utilising The Famous Five paid off so handsomely for Great Western Railway After winning the Premier League last Sunday Liverpool FC’s senior vice-president of digital says the work for marketing is building up to an “even bigger crescendo” offering our view on what they mean for you and the industry From Motorway’s CMO and CFO making their relationship a strategic partnership to Coca-Cola highlighting its “localness” in light of geopolitical tensions The travel industry often finds it easier to “default to visual” but Expedia says the majority of households it reaches via audio are not reached by any other channel Asos will continue with its “marketing transformation” project despite recording a 16% fall in sales to £2.9bn over the past year CEO José Antonio Ramos Calamonte told investors today (5 November) the ecommerce giant will go ahead with the “transformation of its marketing model” to fulfil its mission to become the world’s number one destination for fashion-loving 20-somethings “Three months ago we said we wanted to go to a more strategic trying new ways of approaching our consumers we’ve worked very hard to improve efficiency and setup a social marketing engine,” he said Despite revenues falling 18% year-over-year in the six months to March Asos’s CEO insists the retailer is “delivering” against its turnaround plan Asos’s top marketer on how he got the Asos board to buy-in to a £30m brand investment how he is rebuilding the business’s marketing team and why marketing is well placed to get Asos back on track ASOS has today announced the appointment of José Antonio Ramos Calamonte as Chief Executive Officer and Jørgen Lindemann as Chairman who is currently Chief Commercial Officer of ASOS will become CEO and a member of the ASOS Board with immediate effect He is an experienced international retailer, with deep multichannel experience and a track record of driving innovation. In an 18-year career in retail, José has led on commercial strategy for high-profile brands including Inditex He joined ASOS from leading Portuguese fashion company where he held the position of Chief Executive Officer for almost two years Ramos Calamonte has made a significant impact since he joined to lead the commercial function in January 2021 taking responsibility for driving ASOS’ product and trading strategy globally Lindemann is currently the Chair of Miinto the Danish-based online fashion marketplace and a Board member of Bambuser AB He is the former President and CEO of Modern Times Group the Sweden-based digital entertainment business and recently stood down from the Board of Zalando following five-years as a non-executive director said: “José is the right person to lead ASOS through the next phase of growth and the Board is delighted that he is becoming CEO at such an important time driving change through our commercial function and bringing new energy and enthusiasm to the core product and trading functions of the business José was a core part of the executive team that developed ASOS’ strategy against which we are making continued progress in spite of the backdrop of difficult market conditions.” José Antonio Ramos Calamonte added: “I joined ASOS because it is a business I had admired for a long time I am excited at the opportunities ahead and look forward to working with the Board the rest of the executive team and all our ASOS colleagues to deliver every day for our customers around the world and to create sustainable long-term value for all stakeholders.” Jørgen Lindemann commented: “The Board of ASOS is clearly focused on ensuring we continue to make progress against our strategy in spite of the unprecedented external challenges the business is facing I look forward to working with José and the rest of the team to ensure delivery against our stated ambitions.” British fashion retailer New Look has also confirmed today that Chief Commercial Officer Helen Connolly will step up to the role of CEO, effective immediately. By 2022-10-19T16:00:00 Asos has unveiled four strategic cornerstones to power through the next 12 months of uncertainty and put the business back on track Asos’ new chief executive José Antonio Ramos Calamonte has had what he jokes is the “longest week of his life” over the past four months after taking the reins of the struggling fashion retailer As the online fashion giant posts lacklustre results for 2022 new CEO José Antonio Ramos Calamonte outlines his plan to deliver long-term sustainable growth Asos’s new CEO José Antonio Ramos Calamonte is blaming “insufficient” brand investment and an over-reliance on promotions with driving a slowdown in customer acquisition over the past year The online fashion giant swung to a loss before tax of £31.9m in its full year results for 2022 as it battles with the challenging macroeconomic environment but customer growth “slowed” in the second half of the year More than 80% of the online fashion giant’s marketing investment has been focused on performance marketing “leaving insufficient spend focused on driving longer-term brand awareness” Calamonte told investors in the business’s full year financial report today (19 October) Claiming that Asos has “historically underinvested in marketing relative to peers” Calamonte adds that allocation of marketing spend across markets had not been “effectively prioritised” or “managed effectively to ensure a return on investment” whilst the cost to acquire a new customer has increased,” he says Asos has also suffered from becoming “increasingly reliant” on sales and promotional deals as a tool to attract customers, resulting in “reduced newness”. According to Calamonte, this has contributed to the erosion of gross margin in recent years.Les Binet cautions against ‘senseless’ price promotions as recession looms Gross margin fell by a further 180 basis points (bps) in 2022 Calamonte added that Asos’s growth ambitions have led it to become “excessively capital intensive too complex and overstretched globally” resulting in a “lack of meaningful growth” in its key international markets of the US A review of capital allocation is therefore underway as the business focuses on long-term sustainable growth including a review of marketing investment deployment of capital and resource across geographies customer acquisition channels and digital and data capabilities Asos promoted Calamonte from chief commercial officer to CEO in June following the exit of former CEO Nick Beighton in October 2021 Asos has historically underinvested in marketing relative to peers with allocation across markets not effectively prioritised or managed effectively to ensure a return on investment In its half year results in April, the business announced plans to increase marketing investment in the second half of the year with a focus on broad-reach marketing to drive brand awareness alongside a “sustained level” of promotional activity when the second half proved “more challenging than expected” as the cost of living crisis hit consumers’ discretionary income and inflationary pressures affected Asos’s supply chain planned marketing investment was reduced as part of efforts to mitigate the impact on profitability After pausing its broad reach marketing campaign in the US in the second half customer acquisition and visits growth slowed Asos reports total sales growth of 4% in 2022 After accounting for £53.9m of adjusting items The fashion giant’s core UK operation showed resilience and grew its revenue by 7% to £1.76bn increasing its share of the adult online apparel market by 140bps to 10.1% Asos’s active customer base in the UK grew 5% but average basket value and average units per basket declined driven “primarily” by an increase in return rates and price promotions with a particularly strong uplift in the US (200%) supported by the firm’s wholesale partnership with Nordstrom The business credits the brand with driving margin expansion and believes the strong performance of Topshop demonstrates the “potential” for its own brands Asos is expecting a decline in the UK apparel market over the next year due to the macroeconomic situation but says it is “confident” in its ability to take market share More than 80% of marketing investment focused on performance marketing leaving insufficient spend focused on driving longer-term brand awareness Calamonte has identified four key actions Asos plans to deliver against over the next 12 months targeted at improving its ability to navigate the ongoing economic turmoil The first is “renewing” its commercial model with a shorter buying cycle and quicker speed to market to enable a “more relevant” customer offer while implementing a new approach to stock clearance other than promotions to increase full-price sales Asos will also focus on simplifying and reducing its cost profile ensuring a “robust and flexible” balance sheet and “refreshing” the company culture Calamonte aims to encourage a “culture of innovation and creativity” while reinforcing the business’s senior leadership team with strategic hires CFO and chief operating officer Mathew Dunn also left the business in a surprise move “On the basis of the actions I have set out today the team and I will work resolutely to emerge from these turbulent times as a more resilient and agile business – all the time guided by our purpose to give our customers the confidence to be whoever they want to be,” Calamonte says The new CEO’s plan appears to have eased some investor concerns with shares recovering from a 12% drop on Monday morning according to GlobalData’s head of apparel Chloe Collins shares are still down almost 80% on this time last year Robert Birge will be returning to the travel industry after more than two years leading marketing at online fashion giant Asos Asos delivered revenue growth of 4% in the six months to 28 February and an adjusted profit before tax of £14.8m This marks an 87% drop in profit since last year Former CMO Ed Hughes has been brought back into the company to once again pick up the marketing reigns replacing Ian Cafferky who joined the business in February Archive Architecture London-headquartered fast fashion eCommerce giant turns to chief commercial officer and also appoints new chairman ASOS has revealed a new CEO and chairman while issuing a profit warning The listed online fast fashion retailer said chief commercial officer José Antonio Ramos Calamonte will be handed the reins London-headquartered ASOS said it will be expecting lower profits this year – £20-60 million before tax – after a rise in shoppers returning clothes amid the cost of living crisis Total group revenue fell by 4% year-on-year for the three months to 31st May while updated guidance for the year puts likely revenue growth at 4-7% Ramos Calamonte will join the board with immediate effect He has an 18-year career in retail behind him having led on commercial strategy for high-profile brands including Inditex Esprit and Carrefour Spain after starting his career at McKinsey where he held the position of CEO for almost two years At ASOS he has had responsibility for driving product and trading strategy globally own-label product innovation and brand partnerships RetailTech 50 – UK’s most innovative retail technology creators for 2022 who joined the ASOS board as a non-executive director in November 2021 Dyson has been on the ASOS board since October 2013 He recently stood down from the board of Zalando following five-years as a non-executive director “José is the right person to lead ASOS through the next phase of growth and the board is delighted that he is becoming CEO at such an important time,” said Dyson José was a core part of the executive team that developed ASOS’s strategy in spite of the backdrop of difficult market conditions “I will step down from the ASOS board after nine years confident that we have in place the right leadership to deliver against the long-term strategy to significantly increase sales and profitability by leveraging ASOS’s strong scalable global platform and its best-in-class customer experience.” Potential THG buyers abandon £2.1bn takeover bids This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply Δdocument.getElementById( "ak_js_1" ).setAttribute( "value" and receive alerts when they’re in the news Proactive financial news and online broadcast teams provide fast informative and actionable business and finance news content to a global investment audience All our content is produced independently by our experienced and qualified teams of news journalists Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London We are experts in medium and small-cap markets we also keep our community up to date with blue-chip companies commodities and broader investment stories This is content that excites and engages motivated private investors The team delivers news and unique insights across the market including but not confined to: biotech and pharma crypto and emerging digital and EV technologies Proactive has always been a forward looking and enthusiastic technology adopter Our human content creators are equipped with many decades of valuable expertise and experience The team also has access to and use technologies to assist and enhance workflows Proactive will on occasion use automation and software tools all content published by Proactive is edited and authored by humans in line with best practice in regard to content production and search engine optimisation ASOS PLC (LSE:ASC) is expecting an investor rebellion after stand-in boss Mat Dunn pocketed a salary of £576,000 last year shareholder advisory group Pirc recommended that investors reject or abstain on more than a third of the 15 motions including former CEO and CFO Dunn’s £576,000 payout last year recommended investors back the firm’s pay policy Pirc also reportedly advised shareholders to abstain on chairman Jorden Lindeman’s re-election while describing new CEO Jose Antonio Ramos Calamonte’s total potential salary of £4.2mln as “excessive.” Calamonte was appointed in June of this year and one of his first actions was to introduce a 12-month turnaround plan ASOS said it would focus on delivering four actions comprising “renewing its commercial model and improving inventory management; simplifying and reducing its costs profile; ensuring a robust and flexible balance sheet; reinforcing the leadership team and refreshing the culture” This process began earlier this month when ASOS confirmed it will be writing off somewhere between 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Group VAT registration number 872070825. You can contact us here Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use By 2022-10-19T06:26:00 Asos swung into the red as it struggled against an “incredibly challenging economic environment” The fashion retailer recorded an operating loss of £9.8m in the year to August 31 down from a profit of £190.1m the year before