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International sales soar at Asos

Full-year sales at Asos jumped 33% year on year to £1.9bn, fuelled by “solid” UK sales and an “excellent” international performance aided by the drop in the value of sterling.

Retail sales at the etailer were up 34% to £1.87bn on a reported basis for the year to 31 August, and up 27% on a constant-currency basis.

UK sales rose 16% to £698m, while international sales rocketed 47% year on year to £1.2bn, helped by the reinvestment of the currency tailwind.

Gross profit for the year was up 33% compared with 2016 to £958.3m. The retail gross margin was up 10 basis points year on year, even though Asos took the decision to absorb the increased cost incurred by the weakness of sterling.

The number of active customers during the year was up 24%, the average basket size was up 2% and the average order frequency increased by 5%.

The total number of orders shipped during the year was up 30% to £49.6m.

As a result of the strong performance the etailer has increased its full-year sales growth guidance for the current financial year to 25%-30%. The EBIT margin will remain stable at 4%.

Asos also intends to increase its capital expenditure to between £200m and £220m.

Nick Beighton, Asos CEO, said: “Our international performance was excellent, as we reinvested FX tailwinds and benefited from our continually improving customer proposition. In a competitive UK market, we achieved strong full price performance whilst further increasing market share.

“At the same time, we ramped up our investment in building the increasingly strong and differentiated Asos proposition. Our new agile technology platform is allowing us to accelerate our pace of innovation with great benefits for our customers, including new payment methods and additional language sites to come. The investments we are making will see us add 1,000 new heads and will lay the foundations for a 60% increase in unit capacity and £4bn of net sales.”

“We are confident we are positioning Asos to be the world’s number one destination for fashion-loving twentysomethings.”

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