Fourth quarter group sales down 15
Second half earnings seen at bottom of guided range
Second half cash inflow seen lower than expected
Shares down 2

LONDON, Sept 26 Reuters British online fashion retailer ASOS reported a 15 fall in fourthquarter sales and forecast earnings around the bottom of its guided range but said it was still making progress with its turnaround plan.

The group led by CEO José Antonio Ramos Calamonte announced an overhaul of its business model last October after the economic downturn and a string of operational problems hammered its profits and shares.

Ramos Calamonte39;s strategy is to prioritise profit over topline growth by reducing the amount of stock ASOS carries, cutting costs and improving its cash position.

ASOS said the fourth quarter sales decline was in line with guidance, with a stronger start to the period followed by a weaker performance in July and August amidst a deterioration in the UK clothing market.

It said second half earnings before interest and tax EBIT were expected to come in towards the bottom of the previously guided 40 million pounds to 60 million pounds 4973 million range with free cash inflow 90 million pounds below expectations, due to what it said were timing effects that would soon reverse.

Its shares fell 2 in early trading. The stock was already down by 42 over the last year.

We have reduced our stock balance by circa 30, significantly improved the core profitability of the business and generated cash…