SOS PLC said Wednesday that pretax profit fell 68% in fiscal 2019 after investing in building a larger scale in both the EU and U.S., but said it has started the new fiscal year well.
The U.K. online retailer mainly attributed its more "disruptive than expected" performance to warehouse transitions in the U.S. and Europe, which resulted in costs of 45 million pounds ($57.1 million), but said its sales grew in all of its markets.
The London-listed company made a pretax profit of GBP33.1 million pounds ($42 million) for the year ended Aug. 31 compared with GBP102.0 million for fiscal 2018.
Revenue rose to GBP2.73 billion in fiscal 2019 from GBP2.42 billion a year earlier, the company said. Gross margin fell to 48.8% from 51.2% in fiscal 2018, ASOS said.
"Whilst there remains lots of work to be done to get the business back on track, we are now in a more positive position to start the new financial year," Chief Executive Officer Nick Beighton said.
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