ASOS sales up 13% despite European challenges

Sales at online fashion retailer ASOS were up by 13 per cent in the three months to the end of February.

The latest quarterly report showed total revenue had risen to £658.5 million in the three months to 28 February, with total retail sales across markets also up 13 per cent at £641.3 million.

On a region-by-region basis, UK sales were up 14 per cent at £244.4 million, outperforming European sales, which were up 12 per cent.

However, ASOS chief executive Nick Beighton cautioned that while Europe-wide sales were strong, France and Germany, the company’s two largest markets, “continued to be challenging”.

The group’s US performance was also behind plans for the period, due to a warehouse Atlanta going fully online, with demand far exceeding expectations, causing a “significant” backlog, which has now been cleared.

Total orders placed across all markets were up 15 per cent on a year-on-year basis at 17.3 million.

On a half-year basis to 28 February, total retail sales rose to £1.28 billion, with the UK continuing to lead the way with a 16 per cent rise in sales to £481.5 million.

The online retail platform said its guidance for 2019 remained unchanged at around 15 per cent growth.

Beighton added: “We will be increasing investment in price and marketing in the second half, particularly in France and Germany. Given the actions we are taking together with an improving US performance, we believe the group will deliver stronger growth in the second half."

The buoyant sets of results come after ASOS shocked the market in December 2018 by issuing a profit warning following a slump in the crucial November trading period.

Hugh Fletcher, global head of innovation and consultancy at Wunderman Thompson Commerce saif: "Asos’ positive results show the strength that online retailers are continuing to have over their high street counterparts.

"The speed and convenience that Asos offers through its Premier Delivery service means it can provide consumers with the product they want, with little waiting time. This model has seen success in other retail sectors, with Ocado today also reporting revenue growth, despite challenging external circumstances."

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