Online retailer posts better than expected financial results
Retail sales are up 30% at ASOS. The online retailer has shared financial results for the four months ending 30 June 2016, sharing impressive growth well on track to meet the upper end of this year’s estimates.
ASOS said that international sales were up 59% compared with a year ago and reported a 24% overall increase in its number of active customers to a total of 12 million. Sales totalled £555.5m, compared to £386m in the same period last year.
The postitive results come shortly after the company announced that it was closing its China business following disappointing sales in the region.
Nick Beighton, CEO at ASOS, said: “We now anticipate full year sales growth at the upper end of the 20-25% range. Our retail gross margin guidance of up to 50bps of investment remains unchanged and we remain confident in delivering current market profit before tax expectations for the year.”
Joshua Raymond, Head of Retail at XTB.com, said that the results represented a “solid” report from the retailer. He said: “With retail sales towards the top end of most market forecasts, this helps to counter some of the concern from a 1.8% fall in retail gross margins.” He added: “We are also starting to see the first impacts of a weaker pound, with ASOS benefitting from international non-GDP sales. Given the poor prospects of the pound this year, we could expect international sales to continue to receive a boost from the weaker pound on a comparative basis.”
Beighton added: “Given the increased momentum within the business combined with our strong financial position, we will maintain our successful programme of reinvestment to take advantage of the opportunities currently available to us.”