ASOS posts "encouraging" 20% increase in sales
ASOS, the online fashion giant for twentysomthing consumers, has posted an "encouraging" start to its new financial year, with a 20% increase in total revenues in the four months to 31 December 2019.
The business achieved total revenues of £1.106bn (up 20%) and retail sales of £1.075bn (up 18%) reflecting a "better than expected" performance which was driven by a strong Black Friday. Total orders were up 20% to 27.7m.
It also said it had taken the opportunity to build customer momentum (adding 1.4m active customers during the period) and restore "consistent operational execution" following logistical issues at two new warehouses in Germany and the US, which had previously held back its performance.
In the UK ASOS recorded total retail sales of £408.9m, up 18%. The EU was up 22% at £332.5m, the US up 20% at £139.3m with the rest of the world up 23% at £194.2m.
CEO Nick Beighton said: “ASOS has delivered an encouraging start to the year. Strong customer acquisition activity supported by robust operational performance has driven good momentum in all our markets. As we said in October, the focus for this year is to further enhance our capabilities and leverage the investments we have made.
"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.”
The business said it was on track with its plans for the rest of the financial year and that its outlook remained unchanged.