Global online fashion destination ASOS plc announces trading statement for the three months ended 31 May 2014.
Three months to 31 May 2014 highlights
-Retail sales +25% year on year (UK +43%, International +17%)
-International retail sales 62% of total (67% last year)
-Retail gross margin down c.370bps on prior year
-8.6 million active customers at 31 May 2014 (+32% year on year)
-Strong balance sheet and cash position
Nick Robertson, CEO, commented, “Retail sales for the quarter were strong, increasing by 25% (+33% at constant exchange rates) with particularly strong growth in the UK of 43%. However, Sterling’s continued strengthening has resulted in a slowdown in our international sales growth to 17% (+28% at constant exchange rates).
"The resultant higher mix of UK and European sales, with lower retail margins, together with increased levels of promotional activity, leads us to reduce our EBIT margin guidance to c.4.5% from c.6.5% for the current financial year.
"Whilst our profit performance for this financial year is not what we had hoped for due to an unusual combination of factors, our accelerated investment in technology and infrastructure to support our £2.5bn sales ambition is progressing and capex remains within guided levels. All customer metrics - active customers, new customers, order frequency and units per basket - are positive and we are totally focussed on rolling out the ASOS business model globally as the world’s leading online fashion destination for 20-somethings.”