ASOS to discontinue local China operation

RNS Number : 4846U

ASOS PLC

07 April 2016

 

7 April 2016

ASOS plc ("the Company")

Global Online Fashion Destination

ASOS to discontinue local China operation to focus on .com

The Board of ASOS announces that it has decided to discontinue local operations in China. ASOS will continue to serve its growing China customer base via ASOS.com, providing its customers with the benefit of the full ASOS c.80,000 product range, compared to the c.6,000 they can currently access.

It is estimated that the financial impacts of this decision are one-off closure costs of up to £10m, of which the majority will be non-cash, and operating losses to closure in the current financial year of c.£4m. Both of these amounts are pre-tax and will be presented as discontinued operations at the year end.

Nick Beighton, ASOS CEO commented: "We'll continue to do business in China. We are simply serving our growing customer base there in a more efficient, less costly manner."

ASOS will announce its results for the six months to 29 February 2016 on April 12th.

For further information:

ASOS plc	Tel: [phone]
Nick Beighton, Chief Executive Officer
Helen Ashton, Chief Financial Officer Greg Feehely, Director of Investor Relations
Instinctif Partners	Tel: [phone]
Matthew Smallwood / Justine Warren / Guy Scarborough
JPMorgan Cazenove	Tel: [phone]
Michael Wentworth-Stanley / Caroline Thomlinson
Numis Securities	Tel: [phone]
Alex Ham / Luke Bordewich

 

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