ASOS PLC (LSE:ASC) have reported in their latest trading statement that total revenue for the four months ended 30 June 2016 has risen by 30% to £514.6m compared to £396.7m the year prior.
In addition, the fashion group reported a total sales growth of 30% up from £386m to £500.5m. This was helped by a rise in UK sales that increased by 28% from £158.4m to £203.1m as International sales in total increased by 59% from 2015.
Success can also be observed in international sales which included a 53% rise in US sales and the successful launch of the European website in 2015 that has since grown by 32% generating £139.5m. The group revealed a 24% rise in active customers rounding up to 12 million.
Nick Beighton, CEO, said that the company now expects sales growth to reach the upper end of the 20-25% range.
Nick Beighton said:
“I am pleased to report strong retail sales growth of 30% (+26% on constant currency basis) over the four months to 30 June 2016, underpinned by our continued price and proposition investments. UK growth remains strong at +28% and we have seen further acceleration across the US, EU and ROW segments; overall International retail sales increased by 31% (25% on constant currency basis).”
“As anticipated, our retail gross margin for the period is down c.180bps, approximately 40% of which (c.70bps) is due to moving our main sale forward one week into this financial period, with the balance as a result of continued price investment”
Companies like ASOS who are heavily reliant on international sales were put at risk following the Brexit vote. However, the company has defied Brexit fears by earning 60% of its sales overseas.
Since the February lows, ASOS has rallied over 70% to currently trade at 4478p
12/07/2016
