12th Jul 2016 06:18
LONDON (Alliance News) - Online fashion retailer ASOS PLC on Tuesday reported growth in revenue in the third quarter of its financial year and said it expects full-year sales to be at the top end of its guidance. However, retail gross margin shrank slightly.
Revenue in the four months ended June 30 grew by 30% to GBP514.6 million from GBP396.7 million the year before, as total retail sales also rose by 30% to GBP500.5 million from GBP386.0 million. Revenue includes retail sales, plus delivery receipts and third-party revenue.
In the 10 months to the same date, revenue increased by a quarter to GBP1.18 billion from GBP947.1 million, as retail sales were also up by a quarter to GBP1.15 billion from GBP922.5 million.
AIM-listed ASOS said it had 12 million active customers at June 30, which is a 24% increase year-on-year. It added that sales were boosted by price and proposition investments.
Retail gross margin, however, narrowed by around 180 basis points due to investments the retailer has been making into prices, as well as from the move of its main sale one forward one week into the financial period.
ASOS said it now anticipates full-year sales growth for the year ending August 31 at the upper end of its 20% to 25% growth target range. Retail gross margin guidance remains unchanged, and ASOS said it remains confident in delivering current market pretax profit expectations.
"Given the increased momentum within the business combined with our strong financial position, we will maintain our successful programme of reinvestment to take advantage of the opportunities currently available to us," Chief Executive Nick Beighton said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
ASOS