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Asos Plans to Restructure Its International Business

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Set on turning business around in 2015, online fashion retailer Asos has confirmed that it is reviewing the structure of its international business. The U.K.-based company has defined its overseas strategies into four territories—Europe, the U.S., Australia and the rest of the world—and intends to tap into local resources to help provide insight to their individual areas and tailor Asos to its unique customers.

The restructuring includes localizing all of Asos’ press, editorial and social media endeavors. Likewise, the company reported that some activities that were previously localized would now be centralized as a way to streamline processes and work more efficiently, however, it did not name specific changes.

Over 61 percent of Asos’ sales now come from outside the U.K. It ships to 240 countries for free from its warehouse in the U.K.

Asos admitted it has had a “challenging year.” Among the retailer’s problems is the 14 percent year-on-year decrease in pre-tax profits to $75.8 million it posted for the fiscal year ending Aug. 31, 2014. Investments made on its business in China, a massive fire at its main U.K. distribution center in June, implementation of higher prices and a strong pound, which stalled Asos’ international sales, also had lasting effects on its business.

Looking forward, the company said it expects to see similar profit for fiscal year 2015. It plans on making significant investments in its international pricing, as well as in its technology platforms.

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