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Asos upbeat as Q3 sales increase 20% has said its full year sales growth will be at the top of its guidance as its international price cutting strategy begins to bear fruit.

For the four months to June 30 UK sales increased 27% to £158m while global sales were up by 16% year on year to £227m.

The business said sales growth for the full year will be at the top end of its 15% to 20% guidance. It said its gross margin would remain flat with price cuts offset by tight inventory control and strong full price sales.

EBIT margin is expected to remain at the guided level of 4% for full year.

Asos introduced zonal pricing last October, cutting prices in key markets including Australia and Russia, where prices are up to 30% higher than in the UK.

Chief executive Nick Robertson said: “Our continued international price investments underpinned our international sales growth of 16% despite a number of currencies weakening against sterling.

“After accounting for our price investments during the period, the full year gross margin is nonetheless expected to remain in line with last year, assisted by tighter inventory control and strong full price sales. We have increased investment in our people and our customer proposition, particularly in relation to free returns trials.”

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