Asos posts rise in sales and profit
Online fashion retailer Asos has reported that total revenue grew by 18% to £1.15 billion in the year to 31 August. Pre-tax profit edged up 1% after the company invested in its customer proposition and warehousing.
Retail sales climbed to £1.12 billion from £955.3 million in the previous year, which Asos said was driven by strong product, delivery proposition enhancements, the launch of its zonal pricing capability and the implementation of planned price investments to increase price competitiveness outside the UK.
UK retail sales climbed by 27% and international retail sales increased by 11% in the period.
Meanwhile, pre-tax profit edged up to £47.5 million from £46.9 million in the prior year as investment in customer proposition, warehousing and people capabilities was offset by net insurance proceeds of £6.3 million from a fire at the company’s Barnsley warehouse last year, and a reduced loss in its China operation.
At the end of the year, Asos had 9.9 million active customers which was a rise of 13% on the previous year. Average basket value increased by 9%, driven by a 5% increase in average units per basket and a 4% increase in average selling price.
Nick Beighton, Asos chief executive, said: "I'm pleased with these results, which show encouraging progress. We have delivered profit before tax of £47.5 million, on track with our plans. Group revenue increased 18% to £1.15 billion, with UK retail sales performing well up 27%, and international retail sales improving as the year progressed. We ended the year with a cash position of £119.2 million.
“We are attracting more customers with a continued expansion of our delivery proposition and mobile offerings. Customer engagement has been exceptionally strong, with increases in average order frequency, basket size and value.”
Looking ahead, Beighton added: “Trading year to date has started well and preparations are at an advanced stage for peak season. We currently anticipate sales growth for the new financial year of c.20%, gross margin investment of up to 50bps and a similar EBIT margin to the financial year just ended. We remain focused on achieving our next staging post of £2.5 billion sales."
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