RetailAppointments

The CEO of eCommerce giant Asos has stepped down from his role with the listed firm.

A mutual agreement with the board will see Nick Beighton leave the company after 12 years, including six as CEO.  

While the search for a successor commences, CFO Mat Dunn will take on the additional role of COO and lead the business on a day-to-day basis, while Katy Mecklenburgh, currently director of group finance, will become interim CFO. 

The news comes as the company warns that higher logistics costs and supply chain disruption may force its 2022 profits to drop by over 40%.

However in the year to August 31st 2021, Asos’ profit before tax is up 36% to £193.6 million, while revenues rose 22% to £3.91 billion. Sales in the UK and US were up 36% and 21% respectively.

“I have enjoyed every moment of my 12 years at ASOS,” said Beighton. “When I joined, there were fewer than 200 people and we had annual sales of around £220m. 

“I leave a business reporting turnover of almost £4 billion, with more than 3,000 fantastic ASOS-ers delivering for 26 million customers in 200 markets around the world. 

“I am particularly proud of the way in which we have led our industry on putting sustainability at the heart of everything we do with our Fashion with Integrity programme. 

“I wish Mat and the rest of the team well for the next phase of the ASOS journey.”

IT must remain a boardroom priority

Non-executive director Ian Dyson will also become non-exec chair of the board to replace Adam Crozier, whose decision to step down was previously announced, for a three-year term from 29th November.

Asos now plans to expand internationally, with the target of doubling its US and European business, add £1 billion to its annual own-brand sales and launch a partner fulfillment programme.

“We recognise that there is more to do to accelerate the pace and intensity of commercial execution,” said Crozier.

“Asos’s management and board have spent considerable time over recent months developing and validating a clear strategic plan to accelerate international growth, building on ASOS’s undoubted strength in the UK. 

“This will allow ASOS to deliver against the ambition to be one of the few truly global leaders in online fashion retail. Key to that is ensuring that we have the right leadership in place for the next phase, and the changes we are announcing today are designed to ensure we deliver against our clear strategic intent.”

Jørgen Lindemann is joining the board as a NED. The chair of Miinto, a Danish-based online fashion marketplace, is the former president and CEO of Modern Times Group (MTG), a Swedish-based digital entertainments business.

He recently stood down from the board of Zalando following a five-year stint as a non-executive director.