Asos H1 sales grow but pre-tax profit drops to 4 million pounds

Announcing its results for six months to February 28, 2019, Asos plc said, total sales grew by 14 percent or 12 percent at constant currency to 1,314.5 million pounds (1,717.6 million dollars). The company added that UK sales rose by 16 percent to 481.5 million pounds (629.3 million dollars), and international sales by 12 percent to 799.8 million pounds (1,045.3 million dollars). Retail gross margin was down 60bps, while pre-tax profit declined to 4 million pounds (5.2 million dollars), compared to 11 million pounds in the same period last year.

Commenting on the company’s performance, Nick Beighton, Asos CEO, said in a statement: “We grew sales by 14 percent despite a more competitive market. We are confident of an improved performance in the second half and are not changing our guidance for the year."

Asos Design sales were up 5 percent, now annualising 1 billion pounds; while 3rd party brand revenues rose 18 percent. Active customers increased 16 percent during the period under review, while average basket value dropped 2 percent. Total orders placed reached 34.4 million, up 15 percent year on year.

The company further said that there is no change to FY19 reported sales, EBIT guidance of increase of 15 percent and 2 percent EBIT margin respectively.

Picture:Facebook/Asos