Skip to main content
  • Register
  • Help
  • Contact us
  • Log out of your HL account

ASOS shows recovery with Christmas sales beat

ASOS, which sells fashion aimed at 20-somethings, said on Thursday its retail sales rose 20% to 1.075 billion pounds ($1.41 billion) in the four months to Dec. 31. That compares to analysts' expectations of growth of around 15%.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

British online fashion retailer ASOS beat analysts' expectations for sales growth in the key Christmas trading period, indicating that management has addressed the operational issues that plagued it in 2019.

ASOS, which sells fashion aimed at 20-somethings, said on Thursday its retail sales rose 20% to 1.075 billion pounds ($1.41 billion) in the four months to Dec. 31. That compares to analysts' expectations of growth of around 15%.

While gross margin fell 170 basis points, ASOS said that reflected U.S. duty and investments to attract customers which was planned.

The group is working through a major overhaul of its warehouse and technology capabilities, moving from a UK-focused to a global model so it can better access growth opportunities.

Its latest profit warning in July highlighted problems ramping-up warehouses in Atlanta in the United States and Berlin in Germany that restricted product availability, hitting sales and raising costs. However, it said in October these issues were largely behind it.

The Christmas outcome showed further progress.

ASOS plc

Sell: 3,279.00 | Buy: 3,285.00 positive 33.00 (1.01%)
Graph
Prices delayed by at least 15 minutes.

The group reported a good performance across all regions for the four month period, reflecting a record Black Friday and strong customer engagement activity. Total orders increased 20% to 27.7 million.

It said it was on track with its plans for the full 2019-20 year and its outlook was unchanged.

"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," said Chief Executive Nick Beighton.

Shares in ASOS, flat over the last year, closed Wednesday at 3,024 pence, valuing the business at 2.52 billion pounds.

(Reporting by James Davey; editing by Paul Sandle and Kate Holton)


Copyright (2020) Thomson Reuters. This article was from Reuters and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Free news email alerts

  • Daily and weekly news
  • Major Publishers
Register