Asos stock hits all-time high after bright 1Q 2013

Shares at Asos rose to an all-time high of 2,650 pence on the back of an upbeat trading statement released Tuesday. However, the shares fell back to 2,546 pence by the end of the session. Despite the dip, the stock managed to still close 82

pence higher than the previous day (3.33 percent), helped by the hype originated by its seasonal figures.

Asos shares have risen 82 percent over the last year, hitting a record 2,571 pence in October. The stock was up 4.5 percent at 2,574 pence during Tuesday´s midday trading, valuing the company at 2.1 billion pounds.

ASOS’ first-quarter retail sales in Britain rose 24 percent to 62.1 million pounds, while international sales increased 34 percent to 103.7 million pounds and now represent 63 percent of total sales.

"If ASOS can grow sales at 24.3 percent in this (UK) market, it bodes extremely well for ASOS in virtually all of its markets ex UK," said Panmure Gordon analyst Jean Roche.

Asos first fiscal quarter 2013 compares with analysts’ consensus forecasts of about 29 percent and growth of 31 percent in the fourth quarter of the previous financial year, and reflects a 35 percent rise in active customers to 5.4-million from 160 countries, highlighted Reuters.

"I can’t grow much more than these sorts of levels, on the basis that I haven’t got more than 30 percent more stock in the business," Chief Executive Nick Robertson said, adding he was keen analysts "don’t run away with" growth forecasts.

Nevertheless, ASOS’ retail gross margin fell 100 basis points year on year. That reflected a strong comparative period last year, when gross margin rose 440 basis points, the UK accounting for a larger percentage of total sales than initially planned, and price cuts, explained ‘Business Daily Live’.

"The irony of doing more sales in the UK is that that puts a bit of negative pressure on my margin," said Robertson, noting international sales have a higher component of more profitable "own-buy" products.