ASOS plc (LON:ASC) reports its interims on Tuesday with analysts expecting strong results as the online fashion retailer continues to grow in popularity.
Investors cheered the company’s January trading statement when it reported a 36% increase in retail sales to £605mln for the first four months of the financial year and upgraded its full year guidance.
The growth was driven by international sales, which jumped 52%, while UK sales rose 18%.
Given the guidance from that recent update, analysts aren’t expecting many, if any, surprises on Tuesday.
“We remain encouraged that the investments the group is continuing to make in pricing and proposition are having a clear impact on the growth trajectory,” said Numis analyst Andrew Wade.
“We retain our positive stance, confident that ASOS unique proposition will support sustainable long term growth as a global fashion destination.”
Numis is forecasting a £26.5mln pre-tax profit for the six months to end February, although the consensus is a little more upbeat at £27.1mln.
Either way, it’s as good as nailed on to come in ahead of the £21.2mln posted last year.
The group’s decision to expand its international business has proven to be good decision, particularly as the UK clothing market comes under pressure from rising inflation following the Brexit vote.
The retailer said in January’s trading update that it expects full year sales to rise 25% to 30%, compared to an initial forecast of 20% to 25%.
Any revisions to its annual guidance will be closely monitored in the interims.
Tuesday 4 April
Interims: ASOS plc (LON:ASC); Nanoco Group PLC (LON:NANO)
Finals: Panmure Gordon & Co. Plc (LON:PMR); Sprue Aegis Group Plc (LON:SPRP); Shield Therapeutics PLC (LON:STX); Central Asia Metals Ltd (LON:CAML); Next Fifteen Communications Group PLC (LON:NFC); Midatech Pharma Plc (LON:MTPH)