Asos reports 13 percent increase in sales

For the three months ended 28 February 2019, Asos Plc said, total sales grew at 13 percent on a reported basis and 11 percent on a constant currency basis to 658.5 million pounds (873.3 million dollars).

The company added that retail gross margin expanded by 40bps. Total orders placed increased 15 percent at 17.3 million, while active customers rose by 16 percent. For FY19, the company expects sales growth at 15 percent, retail gross margin to be down 150bps and EBIT margin unchanged at 2 percent.

Commenting on the trading update, Nick Beighton, the company’s CEO said in a statement: “We continued to outperform in the UK with sales growth of 14 percent. Sales in Europe were up 12 percent, although France and Germany, our two largest markets, continue to be challenging."

Asos France and Germany continue to struggle

"Our US performance was behind our plans during the period and our ROW segment returned to good growth of 20 percent after a disappointing Q1. Given the actions we are taking together with an improving US performance, we believe the group will deliver stronger growth in the second half. Consequently we remain confident that we will meet guidance for the full year.”

For the first half, Asos reported revenue growth of 14 percent reported and 12 percent at constant currency to 1,314.5 million pounds (1,743.6 million dollars). Retail sales in the UK improved 16 percent during the first half, while sales in international markets were up 12 percent reported and 9 percent at constant currency.

Asos said it will be increasing investment in price and marketing in the second half, particularly in France and Germany.

“Given the actions we are taking together with an improving US performance, we believe the group will deliver stronger growth in the second half. Consequently we remain confident that we will meet guidance for the full year,” Beighton said.

Picture:Facebook/Asos