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Asos took hit of up to £94m from cyber attack
Asos returned to an annual pre-tax profit as its turnaround gathered pace, despite a cyber attack that disrupted trading. The retailer said pausing some marketing and customer activity after the incident reduced gross merchandise value by an estimated 2 to 4 per cent so far this year.
For the year to the end of August, Asos reported a £24.4m pre-tax profit, compared with a £282m loss a year earlier; its adjusted loss before tax was £46.4m, against analysts’ forecast of £61m. Revenue fell 9 per cent to £2.2bn, while womenswear gross merchandise value grew 8 per cent in the second half and menswear remained in recovery. Asos said its investigation found that payment information and account passwords were not affected, and that it had strengthened security.
In short
- Asos returned to annual pre-tax profit despite cyber attack disruption.
- The incident cut gross merchandise value by an estimated 2 to 4 per cent.
- Asos said payment details and account passwords were not accessed.
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The case for
The results suggest Asos’s turnaround is gaining traction: it returned to a reported pre-tax profit, its adjusted loss was smaller than analysts expected, and womenswear sales grew in the second half. The company also says payment details and passwords were unaffected and that it has strengthened security, which may reassure customers and investors.
The case against
The return to reported profit sits alongside a 9 per cent fall in revenue and a substantial adjusted loss, so the recovery may remain fragile. The cyber attack disrupted trading, and Asos estimates that pausing marketing and customer activity reduced gross merchandise value by 2 to 4 per cent so far this year; the incident also raises questions about the resilience of its systems despite the stated security improvements.
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