Asos asks its suppliers for price-cuttings after three profit warnings

Asos asked its supplier for price cuts. The British marketplace has asked 3% reduction to its suppliers to “fuel joint growth” and compensate the investments in logistics, sustainability and marketing.

Asos emphasizes its recent investments, like the development of two logistics platforms in United States and Germany, a bigger effort in sustainability, and its bet for winning consumers.

The company states that its purpose is to reach a global dimension and this goal will also benefit its suppliers. This will be the first time Asos asks its suppliers for a measure of this characteristics.

Asos encourages suppliers to support the group in the mission of becoming a global operator  

This information hits the spotlight after weeks of agitation in the stock exchange. The shares of the company dropped 20% in July after the British company announced a new profit warning (the third one in eight months) facing the closure of its fiscal.

Asos stated that it will close 2019 with a drastic drop in it benefit, going from 123.6 million dollars (111.5 million euros), at the end of its last fiscal, to 36.3 and 42.3 million dollars (32.8 and 38.2 million euros) for the following.

The company assured that this was a consequence of a pattern in the incomes and of logistic issues in Europe and United States. Asos acknowledged that it failed in the operation of its new logistic centers in Berlin and Atlanta, that impacted negatively in its revenue.