Asos surges ahead with sales up 26 %

By Ava Szajna-Hopgood from Retail Gazette

Sales rose 26 % to GBP 2.53 billion for Asos in the financial year to August 31.

Profit before tax came in at GBP 102 million, up from the GBP 80 million achieved the year before.

This was ahead of analysts’ average forecast of GBP 101 million for the year.

The online-only fashion retailer said group revenues rose to GBP 2.42 billion from GBP 1.92 billion a year before.

“This has been another year of substantial progress for Asos”, said chief executive Nick Beighton.

“We delivered 26 % sales growth and 28 % profit growth whilst investing heavily in the long term potential of the business.

“Our reported profit increase was achieved despite bearing material transition costs due to our investment programme.

“All our financial and customer key metrics have shown positive growth. Our guidance remains unchanged both for the current year and the medium term, despite our record levels of investment.”

Asos now expects sales to grow between 20 and 25 % for the 2018-2019 fiscal year.

The results come a few weeks after Asos shares were rocked by its largest investor offloading a stake in the business.

In September Bestseller United sold more than 2 million shares, reducing its holding by 2.4%, sending shares down 5.2 %.