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Asos Beats Brexit With 30% Increase in Sales

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ASOS SS16As other British retailers struggle post-Brexit, Asos remains a top player in the global retail market.

The online global fashion hub for 20-somethings on Tuesday released its trading statement for the four months ended June 30, reporting a 28 percent increase in U.K. retail sales, a 53 percent increase in U.S. retail sales and a 32 percent increase in EU retail sales. To that end, from March through June, the British e-commerce site experienced a 30 percent increase in total retail sales.

“U.K. growth remains strong at 28 percent and we have seen further acceleration across the U.S., EU and ROW (rest of world) segments; overall international retail sales increased by 31 percent (25 percent on constant currency basis),” Asos chief executive Nick Beighton. “As anticipated, our retail gross margin for the period is down about 180 basis points, approximately 40 percent of which (roughly 70 basis points) is due to moving our main sale forward one week into this financial period, with the balance as a result of continued price investment.”

Asos’s websites attracted 123 million visitors last month, compared to only 98 million visitors in 2015. As of June 30, the company reported 12 million active customers, which was 2.3 million more from the same period last year. Overall, Asos gained more U.K. and international customers from 2015 to 2016.

“We now anticipate full year sales growth at the upper end of the 20-25 percent range,” Beighton said. “Our retail gross margin guidance of up to 50 basis points of investment remains unchanged and we remain confident in delivering current market PBT (profit before tax) expectations for the year.”

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