Asos posts 10 percent sales rise

Sales for the period to June 30, 2020 at Asos were up 10 percent to 1,014.2 million pounds with a steady improvement, reflecting increasing warehouse capacity, underlying improvement in demand and a beneficial returns profile. The company said in a statement that active customer base increased to 23 million, up 16 percent year on year, with particularly strong growth in new international customers, while item growth was 15 percent but ASP declined driven by ‘lockdown’ product mix and limited demand for occasion wear.

Commenting on the results, Nick Beighton, the company’s CEO, said: “Our performance in P3 shows that we are delivering against this aim despite the tough economic and social backdrop. We have learnt a lot and adapted quickly, and Asos finishes the period with improved underlying profitability. While we remain cautious about the consumer impact of Covid-19 looking forward, we are on track to deliver strong year-on-year profit growth and to return to positive free cash flow for the full-year.”

The company expects FY20 PBT expected to be towards the top end of market expectations, despite material incremental Covid-19 costs, supported by rigorous performance management, continued removal of non-strategic cost and beneficial returns profile. Asos further said that strong net cash position reflecting proactive actions; robust cash management expected to deliver return to positive FCF in FY20.

Picture:Asos website