Asos posts retail sales growth of 22 percent
For the four months ended June 30, 2018, Asos Plc said, retail sales grew 22 percent on a reported basis and 21 percent in constant currency to 802.7 million pounds (1,061 million dollars). Total revenue for the period also rose 22 percent reported and 21 percent in constant currency to 823.9 million pounds (1,088.8 million dollars).
Commenting on the update, Nick Beighton, the company’s CEO, said in a statement: “We delivered good sales growth, particularly in the UK, better than planned gross margin alongside significant progress on our infrastructure investments. P4 trading has started well, particularly in terms of full price sell through. We remain confident of delivering another year of strong growth.”
The company witnessed continued market share gain in the UK with retail sales growth of 23 percent to 288 million pounds (380.7 million dollars) and international sales growth of 21 percent to 514.7 million pounds (680 million dollars), as the company added, infrastructure and proposition investments continue. Retail gross margin for the period under review was up 130bps, while active customers increased 20 percent.
For fiscal year 2018, Asos expects sales to rise within the 25-30 percent range, likely towards the lower end. Gross margin is expected to rise 100bps and FY18 PBT is expected to be in line with consensus. The company said, medium term guidance remains unchanged; with expectation of 20-25 percent sales growth per annum at a 4 percent EBIT margin.