Asos…Maintaining sales momentum amidst accelerated growth

Online fashion retailer Asos has had steady sales over summer posting £141million, in three months to August 31, an increase of 31% over the same period last year.

The UK sales increased 15% to £49.9 million, as compared with 8% in the previous quarter, which covered a slightly overlapping period because of an accounting year-end change. Asos reported that international sales growth fell from 49% to 42% to £91.2 million in the quarter.

Asos reported total group sales for the year to the end of August increased 38% to £537.9 million, moving it closer towards its £1 billion target.

Nick Robertson, chief executive of Asos, said the UK sales growth had limited the amount of stock the company could sell overseas. “We can’t sell the same dress twice”, he said.

Robertson said that the UK improvement also reflected the fact that the comparable period in 2011 included the disruption caused by riots in London and some other English cities, adding that price cuts were another aid.

Asos said it expected pre-tax profit for the year to August 31 to be in line with market expectations. Robertson said that analysts are predicting pre-tax profit of nearly £44 million. Shares in Asos were broadly flat at £20.37 in early morning trading in London on Wednesday after the trading update. Asos shares have risen 23% over the past year.

Asos sells clothes that are adorned by celebrities including television presenter Alexa Chung, singer Tulisa Contostavlos and model Kate Moss. Asos sells more than 50,000 own label products, with 1,500 new lines introduced each week.

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