ASOS (LON:ASC) shares rose on Thursday after the online fashion retailer posted a rise in revenue for the four months ended 31 December.
Shares in the company were up by 5% during Thursday morning trading.
The online fashion retailer said that revenue growth was driven by a “record” Black Friday trading period.
The results will provide joy to investors after a string of profit warnings were issued by ASOS last year.
ASOS said that, for the four months ended 31 December, group revenue was up 20% amounting to £1.1 billion.
Thursday’s update provides some relief compared to the situation ASOS found itself in over a year ago, back when the company issued a shock profit warning during the run-up to Christmas in 2018.
It is no secret that the UK retail sector has been struggling in recent years; earlier in January the British Retail Consortium said that figures for 2019 make it “the worst year on record”.
ASOS’ struggles over the past year shows that the gloomy trading conditions are not confined to the high street – online retailers also faced difficulty.
“ASOS has delivered an encouraging start to the year,” Nick Beighton, CEO, said in a company statement.
“Strong customer acquisition activity supported by robust operational performance has driven good momentum in all our markets,” the CEO continued.
“As we said in October, the focus for this year is to further enhance our capabilities and leverage the investments we have made. It is still early in the year and much remains to be done, but we are encouraged by the progress we have made so far. We remain confident in our ability to capture the substantial opportunity ahead of us.”
Shares in ASOS plc (LON:ASC) were up on Thursday, trading at +5.09% as of 10:07 GMT.
