19th Sep 2013 12:06
LONDON (Alliance News) - ASOS PLC retail sales have soared in the financial year, with the company reporting a 47% rise in retail sales in its final quarter of the year, and a 40% increase for the full year.
The global online clothing and beauty retailer said that this huge jump in sales was boosted by impressive international growth and an increase in active customer numbers, which were up 42% year on year at the end of the year, to 7.1 million customers.
"ASOS has teams in different countries, dedicated to that specific website, and we have responded well to the use of smartphone technology and tablets by launching a number of mobile services in countries like Russia, Germany and France. We have also been investing in pricing products... These are all factors that have contributed to this rise," an ASOS spokesperson told Alliance News.
In its Q4 trading statement released Thursday morning,ASOS said it expects its full-year pretax profit to be marginally above expectations.
"International growth continues to be driven by the countries in which we have dedicated websites and in-country teams, and was particularly strong in Europe, driven by France, Germany, Italy and Spain. We also saw strong growth in the US and in Russia, following the launch of our Russian website," said Chief Executive Officer Nick Robertson in a statement.
ASOS said that retail sales rose to GBP208 million in the three months to August 31, and to GBP753.8 million for the full year. It said that EU retail sales grew the most in the final quarter, recording a 73% increase, while US retail sales and retail sales for the rest of the world were up 59% and 26% respectively.
The company said that international sales made up 64% of its total sales, and UK retail sales rose 49% in the fourth quarter to GBP74.1 million.
The ASOS spokesperson spokesperson declined to comment on sales of individual brands, as well as the ending of its 12-week trial period with Primark; ASOS began listing a limited collection from Primark in June, with the contract ceasing earlier this month. The spokesperson emphasised to Alliance News that the partnership was just a 'trial', and did not disclose whether Primark had in fact boosted company profits as hoped for.
The spokesperson also declined to comment on whether the online retailer was currently considering any other potential partnerships in the near future.
The company reported a 460-basis-point rise in its retail gross margin in the final quarter, and said its full-year retail gross margin was up 100 basis points on the prior year.
It said that group revenues, including retail sales, delivery receipts and third party revenues, rose 46% in the final quarter, and was up 39% in the financial year, to GBP769.4 million.
On September 2, ASOS announced a large logistics deal with UK logistics and transport company, Norbert Dentressangle, for a three-year contract which will see Norbert Dentressangle manage its worldwide distribution centre.
The company is expected to release its full year results on October 23.
ASOS shares were up 10.9% at 5,359.15 pence per share after midday Thursday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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