It takes something quite special on the trading front to justify the stock market valuation of AIM’s largest company, ASOS plc (LON:ASC).
However, the online clothes retailer pulled not one, but a number of rabbits from the hat.
READ: ASOS no longer out of fashion at Credit Suisse
Defying the gloom conjured up b High Street rivals, it said annual profits had more than doubled, while increasing its forecasts for the current year.
The historic first: Revenues grew by 33% to £1.92bn for the 12 months ended August, while pre-tax earnings were up 145% at £80mln.
International business the star performer
Chief executive Nick Beighton said the international business had been the star performer. Overseas sales were up 47% and the operation is now almost double the size (in turnover terms) of the UK.
Having a strong international presence has provided a further boon given the weaker pound. These one-off forex gains have been reinvested into the business to “improve the customer proposition”.
READ: UK online fashion retailer ASOS invests in USA where sales are growing
“In a competitive UK market, we achieved strong full price performance whilst further increasing market share,” said CEO Beighton.
While the prelims were in line with City hopes, the company’s expectations for the year ahead were a little punchier than had been factored into most spreadsheets.
ASOS reckons 2018 sales will grow by 25-30% compared with the firm’s own medium-term guidance of 20-25%.
Up 14% in the year to date, the shares opened the session down 1% at £56.46, meaning the stock is trading on a forward price-to-earnings multiple of 60, according to the Digitallook data service.