Summary financial results
£m1 | Year to 31 August 2018 | Year to 31 August 2017 | Change | CCY2Change |
Group revenues3 | 2,417.3 | 1,923.6 | 26% | 24% |
Retail sales | 2,355.2 | 1,876.5 | 26% | 24% |
UK retail sales | 861.3 | 698.2 | 23% | 23% |
International retail sales | 1,493.9 | 1,178.3 | 27% | 24% |
Gross profit | 1,237.1 | 958.3 | 29% | |
Retail gross margin | 49.9% | 48.6% | 130bps | |
Gross margin | 51.2% | 49.8% | 140bps | |
Profit before tax | 102.0 | 80.0 | 28% | |
Diluted earnings per share | 98.0p | 76.6p | 28% | |
Cash and cash equivalents | 42.7 | 160.3 | (73%) |
Results summary
- Retail sales grew at +26% on a reported basis and +24% on a constant currency basis
- Strong growth across both UK, +23%, and international territories, +27% (constant currency +24%)
- Retail gross margin up 130bps
- PBT up 28% at £102m (EBIT margin 4.2%), after taking account of substantial transition costs
- Continued strong customer engagement: active customers4 +19%, average basket value +1%, order frequency5 +7%
- Total orders placed 63.2m, +27% year on year
- US hub phase one operational, Euro hub phase two progressing well
- Cash balance of £43m reflecting working capital and capex investment, new £150m 3-year facility agreed
Guidance and medium term outlook
- No change to FY19 reported sales and EBIT guidance; c.20-25% and c.4% EBIT margin respectively
- Medium term reported sales growth guidance also unchanged at c.20-25% p.a. with a c.4% EBIT margin and capex of £230-£250m p.a.
Nick Beighton, CEO, commented:
“This has been another year of substantial progress for ASOS. We delivered 26% sales growth and 28% profit growth whilst investing heavily in the long term potential of the business. Our reported profit increase was achieved despite bearing material transition costs due to our investment programme. All our financial and customer key metrics have shown positive growth.
Our guidance remains unchanged both for the current year and the medium term, despite our record levels of investment.
ASOS is moving fast and is as differentiated as ever. The potential for our business is huge and we remain focussed on building ASOS into the world’s number one destination for fashion loving twentysomethings”.
1 All numbers subject to rounding throughout this document,
2 Constant currency is calculated to take account of hedged rate movements on hedged sales and spot rate movements on unhedged sales
3 Includes retail sales, delivery receipts and third party revenues
4 Defined as having shopped in the last twelve months as at 31 August
5 Calculated as last twelve months’ total orders divided by active customers
Investor and analyst meeting:
There will be a meeting for analysts that will take place at 9.30am today, 17 October 2018, at Numis Securities, 10 Paternoster Row, London EC4M 7LT. Photo ID and security checks will be required so please ensure prompt arrival. A webcast of the meeting will be available both live and following the meeting at www.asosplc.com. Please register your attendance in advance with Tom Berger at Instinctif Partners on either 020 7457 2834 or tom.berger@instinctif.com.
asos