By Sabela Ojea
SOS PLC said Wednesday that pretax profit fell 68% in fiscal 2019 after investing in building a larger scale in both the EU and U.S., but said it has started the new fiscal year well.
The U.K. online retailer /zigman2/quotes/209092221/delayed UK:ASC +4.60% mainly attributed its more “disruptive than expected” performance to warehouse transitions in the U.S. and Europe, which resulted in costs of 45 million pounds ($57.1 million), but said its sales grew in all of its markets.
The London-listed company made a pretax profit of GBP33.1 million pounds ($42 million) for the year ended Aug. 31 compared with GBP102.0 million for fiscal 2018.
Revenue rose to GBP2.73 billion in fiscal 2019 from GBP2.42 billion a year earlier, the company said. Gross margin fell to 48.8% from 51.2% in fiscal 2018, ASOS said.
“Whilst there remains lots of work to be done to get the business back on track, we are now in a more positive position to start the new financial year,” Chief Executive Officer Nick Beighton said.