Asos posts sales rise as UK outperforms and US lags

Asos’ total sales climbed 13% to £658.5m on a reported basis in the three months to February 28. Total retail sales were up by the same percentage to £641.3m.

In Asos’ domestic market, sales advanced 14% to £244.4m.

In the US, sales rose 4% to £76.6m but demand outpaced the ability to supply. In Germany and France conditions were challenging, although revenue in Europe still climbed 12%.

The etailer reported that active customer numbers were up 16%, but the average selling price and average basket size were both down 1%.

The average basket value fell 2%, but order frequency was 4%. The etailer’s conversion rate was flat.

Asos maintained its full-year guidance.

Chief executive Nick Beighton said Asos “continued to outperform in the UK”.

He added: “Our US performance was behind our plans during the period. As our Atlanta warehouse went fully online, demand far exceeded our expectations. While very encouraging for the longer term, this caused a significant short-term despatch backlog which we have now cleared.

“These delayed shipments will be recognised in [period three] and US trading is now regaining momentum. Our Rest of the World segment returned to good growth after a disappointing quarter one.

“Our retail gross margin guidance for the year remains. We will be increasing investment in price and marketing in the second half, particularly in France and Germany.

“Given the actions we are taking together with an improving US performance, we believe the group will deliver stronger growth in the second half. Consequently we remain confident that we will meet guidance for the full year.”