ASOS PLC Trading Update (5111C)

TIDMASC

RNS Number : 5111C

ASOS PLC

18 March 2014

18 March 2014

ASOS plc ("the Company")

Global Online Fashion Destination

Trading Statement for the two months ended 28 February 2014

 
                                        Two months to 28 February       Six months to 28 February 
 GBP'000s                                 2014     2013   Increase        2014      2013  Increase 
----------------------------------  ----------  -------  ----------  ---------  --------  --------- 
 UK retail sales                        48,373   39,866         21%    182,040   137,579        32% 
----------------------------------  ----------  -------  ----------  ---------  --------  --------- 
   US retail sales                      14,496   10,271         41%     46,749    35,551        31% 
   EU retail sales                      40,331   25,677         57%    127,626    77,457        65% 
   ROW retail sales                     33,454   32,593          3%    115,904   101,676        14% 
----------------------------------  ----------  -------  ----------  ---------  --------  --------- 
 Total International retail sales       88,281   68,541         29%    290,279   214,684        35% 
----------------------------------  ----------  -------  ----------  ---------  --------  --------- 
 Total retail sales                    136,654  108,407         26%    472,319   352,263        34% 
----------------------------------  ----------  -------  ----------  ---------  --------  --------- 
 
 Total group revenues*                 139,159  110,512         26%    481,726   359,731        34% 
----------------------------------  ----------  -------  ----------  ---------  --------  --------- 
 

* Includes retail sales, delivery receipts and third party revenues.

Two months to 28 February 2014 highlights

   --    Retail sales +26% year on year (UK +21%, International +29%) 
   --    International retail sales 65% of total (63% last year) 
   --    Retail gross margin down c.30bps on prior year 

Six months to 28 February 2014 highlights

   --    Retail sales +34% year on year (UK +32%, International +35%) 
   --    International retail sales 61% of total (61% last year) 
   --    Retail gross margin up c.60bps on prior year 
   --    8.2 million active customers* at 28 February 2014 (+36% year on year) 
   --    Strong balance sheet and cash position 

*Defined as having shopped in the last 12 months

Nick Robertson, CEO, commented:

"The Group delivered strong sales and margin growth over the first six months of the year (+34% and +60bps respectively) and we are now confident of achieving GBP1bn of sales in FY 2013/14. We ended the period with 8.2 million active customers, a 36% increase year on year.

Retail sales for the two months to February were strong in all territories except Rest of World where we experienced adverse currency movements, notably in Australia and Russia.

We have accelerated our investment in warehousing (both in the UK and Germany) and in IT, so that we will invest at least GBP68m in capital expenditure in the current year (previous guidance GBP55m.) This investment will increase our sales capacity to cGBP2.5bn per annum, over GBP1bn higher than previous guidance. Our investment in warehousing necessitated levels of dual running costs over the period which will ease from H2 2014/15.

This investment, as well as the investment in our China start-up, will reduce our EBIT margin for the current financial year to 31 August 2014 to c.6.5%. This year these costs will be disproportionately borne in H1, resulting in a likely H1/H2 Profit before Tax split of approximately 30%/70%.

It has been an exceptionally busy period of activity at ASOS, with continued growth and accelerated investment, as we continue to build "The Number 1 Online Fashion Destination for 20 Somethings Globally."

Analyst/Investor conference call:

ASOS will be hosting a conference call for analysts and investors at 8:30am (UK Time) today. Please call Jamie Ramsay at Instinctif Partners for dial-in details on 020 7457 2047 or email [e-mail].

A recording of this conference call will be available on the ASOS Plc investor centre website later today: http://www.asosplc.com/investors.aspx

Photography:

Latest photography will be available at: http://www.asosplc.com/media/image-library.aspx

For further information:

 
 ASOS plc                                     Tel: [phone] 
 Nick Robertson, Chief Executive 
 Nick Beighton, Finance Director 
  Greg Feehely, Head of Investor Relations 
 
 
 
   Instinctif Partners                          Tel: [phone] 
 Matthew Smallwood / Justine Warren / Jamie 
  Ramsay 
 
 
   JPMorgan Cazenove                            Tel: [phone] 
 Luke Bordewich / Gina Gibson 
 
 
   Numis Securities                             Tel:[phone] 
 Alex Ham 
 

Background note

ASOS is a global fashion destination for 20-somethings. We sell cutting-edge 'fast fashion' and offer a wide variety of fashion-related content, making ASOS.com the hub of a thriving fashion community. We sell over 75,000 branded and own-brand products through localised mobile and web experiences, delivering from our UK hub to almost every country in the world.

We tailor the mix of own-label, global and local brands sold through each of our nine local language websites: UK, US, France, Germany, Spain, Italy, Australia, Russia and China.

ASOS's websites attract 71 million visits per month (February 2013: 52 million) and as at 28 February 2014 had 8.2 million active customers(1) (28 February 2013: 6.0 million), of which 3.2 million were located in the UK and 5.0 million were located in our international territories (28 February 2013: 2.5 million in the UK and 3.5 million internationally).

(1) Defined as having shopped in the last 12 months

 
 www.asos.com      www.asos.es 
 www.us.asos.com   www.asos.com/ru 
 www.asos.de       www.asos.com/cn 
 www.asos.fr       m.asos.com 
 www.asos.com/au   marketplace.asos.com 
 www.asos.it       fashionfinder.asos.com 
 

Appendix 1

Retail sales by quarter for the year ending 31 August 2014

 
                                                                           YTD 
GBP'000s              Q1(1)  YOY%    Q2(2)  YOY%  Q3  YOY%  Q4  YOY%   2013/14  YOY% 
------------------  -------  ----  -------  ----      ----      ----  --------  ---- 
UK retail sales     133,667   37%   48,373   21%                       182,040   32% 
  US retail sales    32,253   28%   14,496   41%                        46,749   31% 
  EU retail sales    87,295   69%   40,331   57%                       127,626   65% 
  ROW retail 
   sales             82,450   19%   33,454    3%                       115,904   14% 
International 
 retail sales       201,998   38%   88,281   29%                       290,279   35% 
------------------  -------  ----  -------  ----      ----      ----  --------  ---- 
Total retail 
 sales              335,665   38%  136,654   26%                       472,319   34% 
------------------  -------  ----  -------  ----      ----      ----  --------  ---- 
 

Retail sales by quarter for the year ending 31 August 2013

 
 
GBP'000s              Q1(1)  YOY%    Q2(2)  YOY%       Q3  YOY%       Q4  YOY%    2012/13  YOY% 
------------------  -------  ----  -------  ----  -------  ----  -------  ----  ---------  ---- 
UK retail sales      97,713   28%   39,866   23%   64,347   39%   74,101   49%    276,027   34% 
  US retail sales    25,280   56%   10,271   48%   21,255   59%   20,872   59%     77,678   57% 
  EU retail sales    51,780   29%   25,677   53%   47,215   56%   53,036   73%    177,708   51% 
  ROW retail 
   sales             69,083   39%   32,593   34%   60,796   38%   59,922   26%    222,394   35% 
International 
 retail sales       146,143   38%   68,541   43%  129,266   48%  133,830   47%    477,780   44% 
------------------  -------  ----  -------  ----  -------  ----  -------  ----  ---------  ---- 
Total retail 
 sales              243,856   34%  108,407   35%  193,613   45%  207,931   47%    753,807   40% 
------------------  -------  ----  -------  ----  -------  ----  -------  ----  ---------  ---- 
 

Retail sales by quarter for the year ending 31 August 2012

 
GBP'000s              Q1(1)  YOY%   Q2(2)  YOY%       Q3  YOY%       Q4  YOY%  2011/12  YOY% 
------------------  -------  ----  ------  ----  -------  ----  -------  ----  -------  ---- 
UK retail sales      76,581   11%  32,386    4%   46,437    8%   49,854   15%  205,258   10% 
  US retail sales    16,209  154%   6,928   66%   13,351   78%   13,097   65%   49,585   91% 
  EU retail sales    40,118   37%  16,728   29%   30,224   27%   30,678   22%  117,748   29% 
  ROW retail 
   sales             49,654  196%  24,317  106%   43,912   71%   47,413   53%  165,296   94% 
International 
 retail sales       105,981  102%  47,973   66%   87,487   54%   91,188   42%  332,629   64% 
------------------  -------  ----  ------  ----  -------  ----  -------  ----  -------  ---- 
Total retail 
 sales              182,562   50%  80,359   34%  133,924   34%  141,042   31%  537,887   38% 
------------------  -------  ----  ------  ----  -------  ----  -------  ----  -------  ---- 
 

(1) Four months to 31 December

(2) Two months to 28 February

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTQKODQOBKDBND