Asos to beat profit forecasts after strong fourth quarter

Asos reported a 47% rise in retail sales to £208m in the three months to August 31, while sales in the year to the same date rose 40% to £754m.

Asos chief executive Nick Robertson said that profits would be “marginally above expectations” after the strong results.

International sales rose 47% in the fourth quarter driven by strong trading in Europe and the US.

International equated to 64% of total retail sales over the period compared with 65% last year. 

Asos’ customer numbers increased 42% year on year to 7.1 million active users.

Robertson said: “I am pleased to report a strong finish to the financial year with retail sales growth for the fourth quarter.

“Retail sales growth during the fourth quarter was strong in both the UK at 49% and internationally at 47%. International growth continues to be driven by the countries in which we have dedicated websites and in-country teams, and was particularly strong in Europe, driven by France, Germany, Italy and Spain.

“We also saw strong growth in the US and in Russia, following the launch of our Russian website.”  

He added: “We have now annualised last year’s price investments, and retail gross margin for the quarter grew by circa 460 basis points year on year. This strong gross margin position has allowed us to continue to invest in the overall customer offer, attracting more active customers.”