ASOS plc today release their trading statement for the three months ended 28 February 2019.
Three months to 28 February | Six months to 28 February | |||||||
£m1 | 2019 | 2018 | Reported Increase | CCY2Increase | 2019 | 2018 | Reported Increase | CCY2Increase |
UK retail sales | 244.4 | 214.9 | 14% | 14% | 481.5 | 414.5 | 16% | 16% |
EU retail sales | 198.4 | 177.0 | 12% | 8% | 402.2 | 349.1 | 15% | 10% |
US retail sales | 76.6 | 73.8 | 4% | (3%) | 161.6 | 149.0 | 8% | 4% |
ROW retail sales | 121.9 | 101.4 | 20% | 21% | 236.0 | 218.7 | 8% | 9% |
International retail sales | 396.9 | 352.2 | 13% | 9% | 799.8 | 716.8 | 12% | 9% |
Total retail sales | 641.3 | 567.1 | 13% | 11% | 1,281.3 | 1,131.3 | 13% | 11% |
Total group revenue3 | 658.5 | 581.4 | 13% | 11% | 1,314.5 | 1,158.1 | 14% | 12% |
1All numbers subject to rounding throughout this document, 2Constant currency is calculated to take account of hedged rate movements on hedged sales and spot rate movements on unhedged sales, 3Includes retail sales, delivery receipts and third-party revenues
Highlights include:
- Total sales grew at +13% on a reported basis and +11% on a constant currency basis
- Retail gross margin +40bps
- Total orders placed 17.3m (+15% YoY)
- Customer engagement: active customers4 +16%, average selling price (ASP) -1%, average basket size (ABS) -1%, average basket value (ABV) -2%, order frequency5 +4%, conversion flat
FY 2019 guidance:
- Sales growth: unchanged at c.15%
- Retail gross margin: unchanged at c.-150bps
- EBIT margin: unchanged at c.2%
- Capital expenditure maintained at c.£200m
- Net debt of c.£50m, comfortably within enhanced RCF facility of £220m
Nick Beighton, CEO, commented:
“Group sales over the period increased by 13% and retail gross margin improved by 40bps. We continued to outperform in the UK with sales growth of 14%. Sales in Europe were up 12%, although France and Germany, our two largest markets, continue to be challenging.
Our US performance was behind our plans during the period. As our Atlanta warehouse went fully online, demand far exceeded our expectations. Whilst very encouraging for the longer term, this caused a significant short-term despatch back log which we have now cleared. These delayed shipments will be recognised in P3 and US trading is now regaining momentum. Our ROW segment returned to good growth of 20% after a disappointing Q1.
Our retail gross margin guidance for the year remains. We will be increasing investment in price and marketing in the second half, particularly in France and Germany. Given the actions we are taking together with an improving US performance, we believe the Group will deliver stronger growth in the second half. Consequently we remain confident that we will meet guidance for the full year.”
ASOS will announce interim results on 10 April 2019.
4. Defined as having shopped in the last twelve months as at 28 February, 5Calculated as last twelve months’ total orders divided by active customers asos