ASOS sales power ahead, strong UK sales

Online fashion chain Asos said second quarter sales momentum improved on the back of a stronger than expected UK performance, particularly over Christmas, and following robust overseas demand.

The London based retailer, who sells clothes aimed at twenty-somethings, said total retail sales rose 37% to £186.5m for the three months ended February 28th 2013, resulting in first half retail sales growth of 34% to £352m.

UK retail sales rose 28% while its international business grew by 45%. The group, which offers free worldwide delivery, said international now accounts for 59% of its total retail sales.

Retail gross margin, which measures profitability, fell 0.5 percentage point as it sold more clothes at a discount. Asos said it expects the retail gross margin to improve during the current year.

Nick Robertson, CEO, commented: "Our UK performance remained ahead of expectations, with particularly strong trading during the peak December period. Our EU growth continues to be driven by strong performance in those countries where we have dedicated websites and particularly by our new in-country teams in France and Germany."

"The strength of our UK performance continues to put pressure on our achieved retail gross margin. We expect this to improve during the remainder of the financial year."

Looking ahead it added: "We remain positive in our outlook for the year to August 31st 2013 and continue to trade in line with expectations."

CJ