Asos shares surge on extended GXO logistics partnership

Asos shares rose 6.1% following the announcement of a nine-year contract renewal with GXO Logistics (NYSE:GXO), extending a strategic partnership that began in 2013 through 2034.

The online fashion retailer’s stock gained after GXO announced the renewed agreement on Monday, which covers warehouse fulfillment and transportation services at its highly automated logistics hub in Barnsley. The partnership supports delivery services for over 16 million Asos customers annually.

GXO has operated Asos’s Barnsley facility since 2013, providing operational expertise and technology-enabled innovation for the e-commerce operation. Over the past five years, GXO introduced operational improvements that enabled Asos to extend customer order cut-off times to 11pm.

"Our partnership with ASOS is built on a shared commitment to delivering outstanding service and value," said Russell Atkinson, Managing Director of Fashion, GXO UK&I. "For more than a decade we’ve worked together to support millions of customer orders through a highly efficient, resilient and increasingly technology-enabled operation."

The Barnsley operation employs approximately 3,200 workers, making it a major local employer in the area. The site has held a Royal Society for the Prevention of Accidents Gold Award for Health and Safety consistently each year since 2016.

Jonny O’Hara, Logistics Director at Asos, said the company’s ambition is to deliver curated, personalized experiences to customers. "Delivering that experience relies on strong, flexible and reliable operations, and GXO, as leaders in the industry, have been a trusted partner for more than 13 years," O’Hara said.

The renewed partnership will see GXO continue to support Asos in delivering fulfillment services while exploring ways to enhance the shopping experience for customers.