Asos FY’13 retail sales up 40 percent

REPORT_ For the year ended August 31, 2013, Asos retail sales were up 40 percent. Profit before tax and exceptional items was up 23 percent. Revenue was up 39 percent. International retail sales accounted for 63 percent of total retail sales as

against 62 percent in 2012. Third party revenues, which mainly comprise advertising revenues from the website and the Asos magazine, increased by 7 percent.

Asos' UK performance ahead of expectations

Gross profit was up 41 percent on last year. During the year, retail gross margin increased to 50.8 percent compared to 49.8 percent in 2012. Gross margin (including delivery revenues) increased to 51.8 percent compared to 51.2 percent in 2012. Depreciation and amortisation costs increased by 32 percent. The distribution cost ratio increased to 15 percent compared to 14.3 percent in 2012.

UK’s performance was ahead of expectations. The US was the fastest growing segment with retail sales growth of 57 percent. EU showed retail sales growth of 51 percent. Retail sales in the Rest of World segment grew by 35 percent. This segment continues to be dominated by Australia. Russia is a growing portion of this segment.

The transition to the new warehousing facilities was completed by March 31, 2012, and all related property provisions were utilised by August 31, 2012. There is therefore no exceptional cost or cash outflow during the year ended August 31, 2013.

Asos strengthened its own-brand range in both women’s wear and men’s wear and this accounted for 52.3 percent of sales over the year. The group added new product categories including men’s underwear and women’s Reclaimed Vintage and also launched several exclusive designer collaborations including Markus Lupfer for Asos Black, Marios Schwab Lingerie, Antipodium Shoes, Elliot Atkinson Nightwear, Sophia Kokosolaki and Puma for Asos Black Menswear. During the year Asos added new brands including New Look, Monki, Only, Boy London, Stussy and The Kooples and, following the year end, Jack Wills and Pull & Bear.

Nick Robertson, CEO, commented: “I am pleased to report another strong performance for Asos. During the year we continued to make progress towards our goal of being the world’s number one fashion destination for 20-somethings. We reached the milestone of seven million active customers worldwide. We have started the new financial year positively.”

Asos is based in the UK. It sells branded fashion to 20-somethings. It sells cutting-edge fast fashion and offer a wide variety of fashion-related content. It has eight local language websites: UK, US, France, Germany, Spain, Italy, Australia, Russia and, soon to launch, China. It delivers to 237 countries and territories. During the next six months the group will further establish and grow its Chinese operation and focus on strategic countries like UK, US, France, Germany, Australia and Russia.