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Asos sales soar as investments in pricing pay off

Retail sales at Asos soared by 36% on a reported basis (30% on a constant currency basis) to £605.7m in the four months to 31 December, as investments in its pricing continued to gain traction.

UK retail sales were up 18% year on year to £244m ”despite the more promotional market”.

International sales were up 52% to £361.7m, boosted by the weakness of sterling and US import duty benefits.

Total group revenue, including third-party revenues, was up 36% on a reported basis to £621.3m.

Its retail gross margin slipped by 30 basis points, but Asos said this was in line with its plans.

The etailer’s medium term reported sales growth guidance remains unchanged at 20% to 25%. However, its reported sales growth is expected to increase to 25% to 30% thanks to foreign exchange rate movements and the US duty benefits, which it has reinvested into its pricing.

Chief executive Nick Beighton said: “Following record sales over Cyber weekend and the Christmas trading period, I’m pleased to report a strong start to the year. A 50% plus increase in international sales is a standout performance. UK sales growth at 18% was a strong performance in a more promotional market.

“With sales for the year now expected to be up by 25% to 30%, we’re accelerating our infrastructure investment to handle that growth.”

 

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