What: British online fashion retailer Asos on Thursday reported a 14 percent drop in quarterly revenue but said its new strategy was starting to work as it returned to profitability, sending its battered shares higher.

Why it is important: The group, led by chief executive officer José Antonio Ramos Calamonte, detailed his strategy is to prioritise profit over top-line growth by re-vamping the retailer’s supply chain, cutting costs and increasing innovation last October.

Asos said core earnings, or adjusted earnings before interest and tax (adjusted EBIT), rose more than £20 million ($25.3 million) in the three months to May 31, its fiscal third quarter. It did not disclose the actual adjusted EBIT figure for the quarter.

“We are delivering on our plan to turn the business around: to right-size our stock; to generate cash; to reduce our net debt; and to structurally improve our profitability,” said the CEO.

Asos sales fall 14% last quarter as it prioritises profit