Asos zips up global growth with overseas sales increase

 
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Asos is turning its attentions to international growth (Source: Getty)

Fast fashion retailer Asos is expected to report mid double-digit growth when it reports preliminary annual results on Tuesday, driven by higher overseas sales.

Analysts at Shore Capital said that the company's top-line is likely to continue being driven by non-UK sales, predominantly in the EU and the US.

Overseas sales growth is estimated to be 48.1 per cent for the full year.

Since the drop in the value of the pound last year, Asos has benefited from currency fluctuations with growing overseas sales.

George Mensah of Shore Capital estimated that Asos will report 34.1 per cent overall sales growth.

He said: "In retrospect we view this year and 2018 as a period of heavy investment as the company lays the foundation for further internationalisation. This investment is already helping to accelerate overseas sales growth."

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In the UK business, the company is expected to grow sales 16.5 per cent, representing slower growth than competitors such as Boohoo. But the company has adopted a stronger full-price focus which analysts say helped drive increased business.

Mensah added that: "We see further opportunity for margin expansion in the UK through localised sourcing in the long term."

He concluded: "The company should continue to benefit from structural trends whilst its well-invested proposition highlights to us that it can continue to stand out amongst its online apparel pure-play competitive set."

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