Asos CEO unfazed by US tariff challenges: ‘We’re prepared for whatever comes’
Asos has said it is well placed to navigate upcoming changes to US trade tariffs, with CEO José Antonio Ramos Calamonte stating: “We’re prepared for whatever that might come.”
Asos has said it is well placed to navigate upcoming changes to US trade tariffs, with CEO José Antonio Ramos Calamonte stating: “We’re prepared for whatever that might come.”
Calamonte noted that less than 5% of the retailer’s US sales come from Chinese-origin products, reducing the risk of potential disruptions as the US moves to tighten de minimis trade rules.
At the start of the year, the business implemented a hybrid shipping model that includes fulfilment from its automated UK warehouse in Barnsley, a smaller local US facility, and direct shipping from partner brands.
The shift followed Asos’ decision to close its main US distribution centre in Atlanta in a bid to streamline operations and boost profitability.
The online fashion giant has optimised its global warehouse network as part of this transition, with Calamonte noting the business has reduced warehousing and distribution costs by approximately 20%.
“We have been encouraged by what we have seen since making this change,” he said, adding that the new model allows the company to serve US customers more flexibly and efficiently.
The retailer previously said the new approach would expand product range and lower fulfilment costs for US customers, while delivering a £10m to £20m EBITDA benefit from FY26 onwards.
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“We have seen American consumers reacting very well to the large assortment,” Calamonte said. “We have significantly increased the width of the assortment that American consumers can access.”
He added that the new model has already delivered a “double-digit run rate sales improvement and significantly higher full price mix”.
The CEO noted that even if Chinese products were eliminated, “the width of the assortment that American consumers can access is orders of magnitude bigger than before”.
The US is also proving to be fertile ground for Asos’ Test & React strategy — its data-led, fast-turnaround own-brand model — with growth up 50% in the region over the past year. The approach, which currently accounts for more than 15% of own-brand sales, enables Asos to respond quickly to emerging fashion trends.
The etailer now aims to increase Test & React penetration to 20% of own-brand sales by the end of the year, with further expansion planned.
The CEO said the retailer sees “potential for further growth” in the US, where uptake still lags behind the UK and continental Europe.
Calamonte concluded: “We have multiple routes to serve the US customers, and we are seeing early positive results.”
His comments comes as Asos saw its first-half losses narrow thanks to a significant improvement in gross margin, despite sales continuing to fall.
The retailer posted a pre-tax loss of £241.5m for the 26 weeks to 2 March 2025, down from a £291.1m loss in the same period last year. Sales fell 13% to £1.3bn, dragged down by a 30% and 19% drop in the US and Europe.
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