Asos still firmly en vogue as sales jump by a third

 
Emma Haslett
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Asos has remained unharmed by a shaky retail environment (Source: Getty)

It seems floaty sleeves and Calvin Klein bra tops have pushed Asos into another fabulous summer, after it said sales had jumped by a third in the four months to the end of June.

The figures

Revenues rose 32 per cent to £675.8m, in the four-month period, Asos said today, pushing revenues for the 10 months to the end of June up 35 per cent to £1.59bn.

Sales in the UK held strong, rising 16 per cent to £234.6m in the 10-month period. Meanwhile, in the US sales rose 26 per cent to £94.4m, while in the EU they rose 30 per cent to £196.6m. Across the rest of the world, they jumped 41 per cent to £134.5m.

It shipped 16.9m orders, 28 per cent on last year, while the value of its customers' baskets rose three per cent.

It added it expects reported sales growth to be at the upper end of the 30 per cent to 35 per cent range it has mooted.

That wasn't enough for investors, though: shares fell 1.5 per cent to 5,722p in the minutes after the market opened.

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Why it's interesting

From its early days as a plucky British startup, Asos is now a major player in the global fashion market, with rapidly increasing sales in the US and Europe, as well as sites in Russia and Australia.

And while high street consumers' wallets are squeezed by rising inflation, Asos' customers don't seem to be feeling the pinch: back in April the company, which focuses on fashion-hungry 20-somethings, hiked its full-year sales guidance for the second time this year.

Analyst Nick Bubb pointed out that by rival Boohoo's standards, 26 per cent growth in constant currency "is a little unexciting".

"[But it has] edged up its sales growth guidance for [the year ending] August," he added.

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What Asos said

Nick Beighton, its chief executive, said:

Strong [first half] sales momentum has continued through the third period supported by our ongoing investment in our customer proposition and in price.

This good performance has been underpinned by advances across all areas of our business including retail, technology, warehousing, delivery solutions and customer care. We have made a smooth transition to our new Eurohub 2 facility in Germany and anticipate confirming a new US logistics hub soon.

We remain on track and confident of meeting market expectations.

Read more: Here's why Asos shares have slumped despite raising its revenue forecast

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