3rd Mar 2005 07:00
ASOS PLC03 March 2005 FOR RELEASE 7.00am 3 March 2005 ASOS plc ("ASOS" or "Group") Leading on-line fashion retailer TRADING UPDATE * Profit before tax and goodwill amortisation for the year ended 31 March 2005 estimated at between £1.05m to £1.2m (2004: proforma £625,172) * January and February sales +120% and +140% respectively * Strong post Christmas sales have compounded our warehouse problems resulting in higher than budgeted operating costs and markdowns * Terms agreed on new 70,000 square foot warehouse - move planned for mid - May 2005 * New General Manager of Distribution appointed * 515,000 registered users as at 1 March 2005 * Confident that prospects remain bright Nick Robertson, the Chief Executive, commented: Following a review of current trading, I believe the business will generate aprofit before tax and goodwill amortisation in the region of £1.05m - £1.2m forthe year ended 31 March 2005. This is a disappointment, given the strength of our other business performanceindicators and can be directly attributed to our short term warehousingproblems. Operating out of four warehouses has led to a delay in stock appearing on thewebsite. As a result, we have had to heavily discount winter stock acrossJanuary and February, which should have been selling at full pricepre-Christmas. This discounting has led to a significant increase in sales, well beyondbudgeted levels (January +120%, February +140%). As a consequence, we arebearing the costs associated with very high sales volumes but without the grossmargin to support them. On a positive note, I am pleased to report we have found a suitable 70,000square foot warehouse, terms have been agreed and we expect to be in place bymid-May. At the present time, we are operating out of 16,500 square feet spreadacross four locations. In addition, we have appointed a General Manager ofDistribution, previously Head of Supply Chain at Hamleys to strengthen ourlogistical team. All other business indicators remain strong. Our registered user base is515,000, an increase of 44,000 since 18 January 2005. We achieved second placebehind Next on the Hitwise ranking for Apparel and Accessories sites in bothJanuary and February and traffic to the site in February was on a par withChristmas levels. I am confident that the prospects for ASOS remain very bright. We continue tobuild the management team and infrastructure so as to efficiently managesignificant growth going forward. For further information: ASOS plcNick Robertson, Chief Executive Tel: 020 7240 7070Jon Kamaluddin, Finance Director Tel: 020 7240 7070www.asos.com Beattie FinancialBrian Coleman-Smith / John Moriarty / Jo Clewlow Tel: 020 7398 3300John Moriarty Mob: 07971 402 224 Seymour PierceMark Percy / Ewan Leggat Tel: 020 7107 8000 Note to Editors: ASOS plc is an Internet Retail and Marketing Services Group, established in June2000 and admitted to AIM in October 2001. Its principal business is ASOS.com, a leading online fashion and beautyretailer. A top five company in the UK Apparel and Accessories category (Source:Hitwise), ASOS.com has over 515,000 registered users at 1 March 2005. It offersaround 1,600 lines across womenswear, lingerie, menswear, jewellery,accessories, footwear, beauty and gifting. Its primary customers are Internetsavvy 18-34 year olds. UK Geographical Customer Distribution Approximately 36% of the customers are in London and the South East, 14% in theMidlands, 13% in Yorkshire and the North East, just under 13% in the North West,7% in the South West, 9% in Scotland and 5% in Wales. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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