Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Retail

Asos sees higher sales but margins take hit

Online fashion retailer expects a full-year sales increase at the upper end of the 20%-25% range

The Asos PLC (LON:ASC) online fashion phenomena continued with an upbeat sales forecast, although the retailer had downbeat news on margins.

Asos said it expected a full-year sales increase at the upper end of the 20%-25% range after a strong performance in the four months to June 30.

But the group blamed a 180 basis-point fall in its retail gross margin partly on moving its main sale forward one week into this financial period.

The timing of the sale accounted for about 40% of the decline while the rest was due to cutting prices.

Chief executive Nick Beighton said: "Our retail gross margin guidance of up to 50bps of investment remains unchanged and we remain confident in delivering current market pre-tax profit expectations for the year."

Overall retail sales in the period rose 30% or 26% at constant currencies. International sales, which made up 59% of the total, increased by 31% or 25% at constant currencies. UK sales rose 28%.

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK