British Fashion Electronics ASOS Sales Slowdown Began To Lay Off Large Layoffs.

British fashion online retailer ASOS PLC (ASC.L) was reported to have plunged on Monday after layoffs.

As the originator of the British fashion business, ASOS has seen a slowdown in sales in recent years, especially in the international market. The Times reported on Sunday that the group is conducting internal consultations on the reduction of 100 employees, and most of the layoffs will be concentrated in the marketing department.

ASOS's chief executive, Nick Beighton, is known for its aggressive and cost cutting. In early 2016, the newly appointed Nick Beighton decided to withdraw from the Chinese market, shut down the ASOS.cn and ASOS Tmall flagship stores, and China's distribution center and Shanghai office also stopped operations.

The interim results disclosed in mid April showed that ASOS's pre tax profit dropped to 4 million from 87% in the first half of fiscal year ended February 28th, or 87%, mainly because the new distribution centre recorded an additional 24 million pounds in the period.

In the interim report, chief executive Nick Beighton pointed out that the major capital investment period "unavoidably" has huge interference and transitional cost to the operation, but is now drawing to a close. After completion, it will enhance the group's ability to seize market share, repair profits and accelerate free cash flow in the world.

However, the layoff seems to mean that the profitability of ASOS is not just about the cost of investment, but also the big cost of its operation.

In April, ASOS updated the return policy to avoid many users taking advantage of the company's free return policy and using ASOS as a free fitting company. Nick Beighton also criticized the company's policy and announced that it would crack down on "serial returns" to reduce costs. Nick Beighton says many users regard the ASOS's free return policy as a rental service.

By the end of February, ASOS's medium-term capital expenditure was 103 million pounds, technology accounted for 43%, while European Eurohub, British Barnsley and the United States Atlanta three distribution centers accounted for 34%.

Along with the sharp drop in share prices on Monday, ASOS's market value fell below 2 billion pounds again, narrowing its growth to 3.84% this year, and substantially lost the same period of 12.10% in the same period of the FTSE 100 index, which has fallen 61.12% in the past 12 months. The company will disclose its three quarter results on 23 th.