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Asos posts strong sales growth of 38 percent in H1

By Prachi Singh

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Management

In its interim results statement, for the six months to February 28, 2017, Asos said retail sales growth was 38 percent on a reported basis and 31 percent on a constant currency basis to 889.2 million pounds(1,106 million dollars). Profit before tax 27.3 million pounds was up 14 percent on the previous year and the company posted diluted earnings per share of 26.3p against 22.8p in the same period last year, representing a rise of 15 percent.

Commenting on the company’s positive trading, Nick Beighton, Asos CEO, said in a press release, “These are a strong set of results, showing great progress across the business. We’ve accelerated our significant infrastructure and technology projects, which remain on track, and Eurohub 2 went live in March. Given the current momentum we are seeing, Asos is making good progress towards its ultimate goal of becoming the world’s no. 1 destination for fashion-loving 20-somethings.”

Asos reports 18 percent sales rise in UK

The company saw 18 percent sales rise in UK growth to 340.8 million pounds (423 million dollars), while sales growth in international markets reported was 54 percent at current and 42 percent at constant currency to 548.4 million pounds (682 million dollars).

The company’s total gross margin was down 60 bps, while retail gross margin was down 40bps on prior year, which the company said was in line with plan.

Asos has said that its medium term reported sales growth guidance remains unchanged at a rise of 20-25 percent p.a., however it has revised the current financial year reported sales growth expectation to 30-35 percent. The company added that full year PBT is anticipated to be broadly in line with market consensus.

Financial performance Asos: FY revenue and profit 2004 - 2016

Picture:Facebook/Asos

Asos