Markets

ASOS 4-month Revenues Rise; Sees FY20 Profit Towards Top End Of Market View

(RTTNews) - ASOS Plc (ASOMY.PK, ASOMF.PK, ASC.L), an online retailer, reported Wednesday that its total group revenue for the four months ended June 30 increased 10 percent to 1.01 billion pounds from last year's 919.8 million pounds. Revenue increased 9 percent at constant currency rates.

In its trading statement, the company noted that the revenue growth reflected increasing warehouse capacity, underlying improvement in demand and a beneficial returns profile.

Active customer base increased 16 percent year on year to 23 million, with particularly strong growth in new international customers.

Total retail sales for the four months grew 10 percent to 983.3 million pounds. UK retail sales dropped 1 percent to 329.2 million pounds, while International retail sales climbed 17 percent to 654.1 million pounds.

Gross margin dropped 70 basis points, despite adverse product mix reflecting tight inventory management.

Looking ahead, ASOS said it is on track to deliver strong profit growth for full year. Profit before tax is expected to be towards the top end of market expectations, despite material incremental Covid-19 costs.

The company remains cautious on the short to medium term outlook on demand.

Nick Beighton, CEO, said, "While we remain cautious about the consumer impact of Covid-19 looking forward, we are on track to deliver strong year-on-year profit growth and to return to positive free cash flow for the full-year ."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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