Asos sales and margin up in third quarter

Retail sales at fashion etailer Asos surged 46% to £146.5m in the three months to December 31. Retail gross margins were up 300 basis points.

International sales were up 93% to £84.5m, with sales in the US rocketing 146% to £13m.

In the EU sales were up 33% to £32.5m while in the ‘rest of the world’ arm, sales shot up 179% to £39m.

Asos’ overseas business now accounts for 58% of total revenue.

Asos chief executive Nick Robertson said: “I am pleased to report a strong third quarter performance across all territories including the UK. Overall retail sales were 46% up year on year and our retail gross margin was 300bps higher over the period, in line with guidance. 

“With the business continuing to perform well through these challenging economic times, we remain confident about the outlook and expect our full year results to be in line with market expectations.”

Singer analyst Matthew McEachran described the update as “excellent”.

He said: “Although sales didn’t quite meet our higher than average forecast, UK growth has bounced back to +10% and the gross margin was up 300bps.

“This ought to help sentiment and means they will deliver full year expectations as hoped. The global opportunity remains enormous and, with the exception of slower growth in Europe, they appear to be tapping into this successfully.