Fashion etailer Asos has reported its retail sales were up 15% over the Christmas period but margins were hit.
Within that rise UK sales were up 27% while international revenue was up 5% as Asos’ zonal pricing strategy kicked in. Overseas sales now make up 51% of the total, down from 56% last year.
However, retail gross margin was down about 200 basis points on the prior year, in line with expectations.
Asos chief executive Nick Robertson said: “Trading over the last six weeks was in line with expectations, with growth accelerating over Q1 as anticipated.
“UK sales remained strong. Improved international sales at +5% indicates an initial encouraging response to our planned price investments, also reflected in the retail gross margin performance which is in line with expectations for the period.
“Our roll out of zonal pricing continues to be on track. Our programme of investment in our IT platform and our distribution capability are also progressing well.”
Robertson added that guidance for the year in terms of both sales and EBIT margin remains unchanged.
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