Asos sees international sales growth

Asos, the UK’s largest independent online fashion retailer, said on Monday sales to international markets had accelerated and UK markets weakened in the opening week of its second half. Asos said total sales for the seven weeks to November 15 rose 46 per cent year on year, with international sales up 161 per cent and UK sales up 23 per cent. In comparison, at the interim period to September 30, group revenues rose 47 per cent to £96.5m. International sales for the period rose 112 per cent and the UK market rose 33 per cent.

Mr Robertson said no other retailer was growing at the same rate even though comparative figures from a year ago “were just frightening”. “We had phenomenal growth of over 100 per cent last year,” he said.

The group is regarded as one of the UK’s most successful internet businesses, recording compound annual growth rates of 85 per cent for the past five years, as customers keep on clicking and experienced staff from rival retailers seek refuge from the high street downturn.

Shares in the group opened down 0.6 per cent at 410½p. Gross margins fell 400 basis points from 46 per cent to 42 per cent as it brought in new lines, ran two sales periods, and discounted extra stock bought before the UK economy declined.

The new lines, which include male-focused brands Mango and Hackett, have proved popular and took the number of items its website offered to more than 34,000. But it was not enough to counteract the effect of rising UK unemployment and postal strikes.

Pre-tax profit was up 9 per cent to £4.4m while earnings per share rose from 3.7p to 4p. Net cash fell 2 per cent to £8.7m. The number of active customers in the period rose 32 per cent to 1.2m in the year to the end of October. Mr Robertson said he was “cautiously optimistic” about the key Christmas period.

Image: Asos logo
Source: FT