ASOS said yesterday that tie-dye tops, maxi culottes, and 70s-style outfits were all the rage among young shoppers in the last three months as the online fashion retailer posted a fresh leap in revenues.
Total retail sales increased by 45 per cent to £194m in the three months to 31 May compared with the same time last year and ahead of a 37 per cent rise in the second quarter.
UK sales jumped 39 per cent to £64m while international revenues accelerated by 48 per cent to £129m and now account for 67 per cent of sales.
“We continue to see stronger growth in those countries where we have dedicated websites and in-country teams, notably in the US, France, Germany and Australia,” chief executive Nick Robertson said.
Asos, which joined forces with Primark last week, said it had seen “phenomenal” demand for the discount retailers products in its online debut. The pair have increased the collection of men and womenswear items being piloted on the Asos website from 20 to 80 products and are expected to eventually sell around 130 products.
The trial is expected to last a few months and it is unclear at this stage whether this could lead to Primark launching a full online clothing site.
Asos shares closed up 1.2 per cent at £40.32 having doubled over a year.
Analyst Views | Were ASOS third quarter Results in line with your expectations?
JOHN STEVENSON PEEL HUNT
The offer and price architecture continue to hit the consumer sweet spot, while increased marketing investment is delivering clear results. Momentum continues, with more international mobile sites, an android app and the potential roll out of premier overseas. No change to forecasts, reiterate ‘buy’.
JEAN ROCHE PANMURE GORDON
Asos has published a third quarter statement which is better than consensus...and in line with our top end forecast (45.3 per cent). It remains our top pick in the general retail sector – with the most recent proof of its ability to surprise and delight being the tie up with Primark.
SANJAY VIDYARTHI ESPIRITO SANTO
The performance has been strong across the board, but it is the UK that is likely to stand out with growth of 39 per cent. This is a material acceleration on the 26 per cent growth seen in the first half...The acceleration suggests that initiatives on pricing, product, delivery and digital marketing are working very well.