Trading Statement

RNS Number : 3715U
ASOS PLC
12 July 2018
 


12 July 2018

 

ASOS plc ("the Company")

 

Trading Statement for the four months ended 30 June 2018

 


Four months to 30 June

Ten months to 30 June

£m1

2018

2017

Reported Increase

CCY2 Increase

2018

2017

Reported Increase

CCY2 Increase

UK retail sales

288.0

234.6

23%

23%

702.5

575.4

22%

22%

  EU retail sales

257.4

196.6

31%

23%

606.5

445.5

36%

28%

  US retail sales

108.1

94.4

15%

22%

257.1

218.7

18%

25%

  ROW retail sales

149.2

134.5

11%

11%

367.9

309.7

19%

19%

International retail sales

514.7

425.5

21%

19%

1,231.5

973.9

26%

24%

Total retail sales

802.7

660.1

22%

21%

1,934.0

1,549.3

25%

23%










Total group revenue3

823.9

675.8

22%

21%

1,982.0

1,587.3

25%

24%

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:

·     

Retail sales grew +22% on a reported basis and +21% in constant currency

·     

Continued market share gain in the UK with retail sales growth of +23%

·     

International sales growth of +21% as infrastructure and proposition investments continue

·     

Retail gross margin up 130bps, ahead of plan

·     

Continued strong customer engagement: active customers4 +20%, average basket value +1%, average order frequency5 +8%, conversion +10bps

 

Guidance:

·     

FY18 Sales within the +25-30% range, likely towards the lower end

·     

FY18 Gross margin guidance c.+100bps

·     

FY18 PBT expected to be in line with consensus6

·     

FY18 Capex guidance unchanged at £230-250m

·     

Medium term guidance unchanged; 20-25% sales growth p.a. at a c.4% EBIT margin

 

Nick Beighton, CEO, commented:

 

"I am pleased with the way the business has traded over the last four months and we are on track with our plans for the year. We delivered good sales growth, particularly in the UK, better than planned gross margin alongside significant progress on our infrastructure investments.

P4 trading has started well, particularly in terms of full price sell through. We remain confident of delivering another year of strong growth."

 

4Defined as having shopped in the last twelve months as at 30 June 2018, 5Calculated as last twelve months' total orders divided by active customers

6Company compiled consensus currently £101.0million as at 11 July 2018

 

Investor and Analyst conference call:

ASOS will be hosting a conference call for analysts and investors at 8.00am (UK Time) today. Please call Tom Berger at Instinctif Partners for dial-in details on 020 7457 2834 or email tom.berger@instinctif.com.

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

 

For further information:

ASOS plc                                                                          

Tel: 020 7756 1000

Nick Beighton, Chief Executive Officer


Greg Feehely, Director of Investor Relations

Website: www.asosplc.com/investors




 

Instinctif Partners

 

Tel: 020 7457 2020

Matthew Smallwood / Justine Warren / Tom Berger 

 



 

JPMorgan Cazenove 

 

Tel: 020 7742 4000

Michael Wentworth-Stanley / Caroline Thomlinson / Bill Hutchings




 

Numis Securities    

 

Tel: 020 7260 1000

Alex Ham / Luke Bordewich / Tom Ballard


 

 

Forward looking statements:

This announcement may include statements that are, or may be deemed to be, "forward-looking statements" (including words such as "believe", "expect", "estimate", "intend", "anticipate" and words of similar meaning). By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances, and actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect management's view with respect to future events as at the date of this announcement. Save as required by applicable law, the Company undertakes no obligation to publicly revise any forward-looking statements in this announcement, whether following any change in its expectations or to reflect events or circumstances after the date of this announcement.

Background note:

ASOS is a global fashion destination for 20-somethings, selling cutting-edge fashion and offering a wide variety of fashion-related content, making ASOS.com the hub of a thriving fashion community. ASOS sells over 87,000 branded and 'ASOS Design' products through localised app and mobile/ desktop web experiences, delivering from fulfilment centres in the UK, US and Europe.  ASOS tailors the mix of ASOS design (our in house designed label), global and local brands sold through our own channels to deliver a locally relevant product offer.  Our global propositions help bring our amazing product to nearly every country in the world and we serve customers globally with increasingly tailored local experiences:  Relevant languages, payment methods and delivery and return options.  You can currently shop ASOS in over 200 markets, in 6 major global languages, using an ever greater number of different global payment methods, with hundreds of local delivery and returns options from pick and drop off networks in Italy to Next Day delivery to home in the Netherlands.  We aim to offer all our global customers a truly frictionless experience.

ASOS's websites attracted 180 million visits during June 2018 (June 2017: 146 million) and as at 30 June 2018 it had 18.0 million active customers1 (30 June 2017: 15.0 million), of which 5.8 million were located in the UK and 12.2 million were located in our international territories (30 June 2017: 5.2 million in the UK and 9.8 million internationally).

 

1Defined as having shopped in the last twelve months as at 30 June 2018

 

Appendix 1 - Retail sales growth by period in sterling

Year ending 31 August 2018

£m

P11

YOY%

P21

YOY%

P31

YOY%

P41

YOY%

 2017/18 YTD 

YOY%

UK retail sales

300.9

23%

113.6

17%

288.0

23%



702.5

22%

    EU retail sales

235.2

42%

113.9

37%

257.4

31%



606.5

36%

    US retail sales

102.4

24%

46.6

12%

108.1

15%



257.1

18%

    ROW retail sales

151.9

34%

66.8

8%

149.2

11%



367.9

19%

International retail sales

489.5

35%

227.3

22%

514.7

21%



1,231.5

26%

Total retail sales

790.4

30%

340.9

20%

802.7

22%



1,934.0

25%

 

Year ended 31 August 2017

 

£m

P11

YOY%

P21

YOY%

P31

YOY%

P41

YOY%

 2016/17 

YOY%

UK retail sales

244.0

18%

96.8

16%

234.6

16%

122.8

10% 

698.2

16%

   EU retail sales

165.8

49%

83.1

46%

196.6

41%

98.6

46% 

544.1

45%

   US retail sales

82.7

66%

41.6

54%

94.4

38%

42.9

26% 

261.6

46%

  ROW retail sales

113.2

46%

62.0

88%

134.5

54%

62.9

31% 

372.6

52%

International retail sales

361.7

52%

186.7

60%

425.5

44%

204.4

37% 

1,178.3

47%

Total retail sales

605.7

36%

283.5

42%

660.1

32%

327.2 

25% 

1,876.5

34%

 

Year ended 31 August 20162

 

£m

P11

YOY%

P21

YOY%

P31

YOY%

P41

YOY%

   2015/16   

YOY%

UK retail sales

206.2

25%

83.3

26%

203.1

28%

111.2

32%

603.8

27%

   EU retail sales

111.0

29%

56.9

14%

139.5

32%

67.5

30%

374.9

28%

   US retail sales

49.7

42%

27.1

38%

68.3

53%

34.1

67%

179.2

50%

   ROW retail sales

77.4

3%

33.0

(5%)

87.4

16%

48.0

21%

245.8

9%

International retail sales

238.1

21%

117.0

12%

295.2

31%

149.6

34%

799.9

25%

Total retail sales

444.3

23%

200.3

18%

498.3

30%

260.8

33%

1,403.7

26%

 

 

1Periods are as follows:

P1: four months to 31 December

P2: two months to 28/29 February

P3: four months to 30 June

P4: two months to 31 August

2Restated to remove the results of the discontinued operation in China

 

 

Appendix 2 - Retail sales growth by period at constant currency1

 

Year ending 31 August 2018

£m

P12

YOY%

P22

YOY%

P32

YOY%

P42

YOY%

 2017/18 YTD 

YOY%

UK retail sales

300.9

23%

113.6

17%

288.0

23%



702.5

22%

   EU retail sales

235.2

34%

113.9

29%

257.4

23%



606.5

28%

   US retail sales

102.4

28%

46.6

23%

108.1

22%



257.1

25%

   ROW retail sales

151.9

32%

66.8

7%

149.2

11%



367.9

19%

International retail sales

489.5

32%

227.3

20%

514.7

19%



1,231.5

24%

Total retail sales

790.4

28%

340.9

19%

802.7

21%



1,934.0

23%

 

Year ended 31 August 2017

 

£m

P12

YOY%

P22

YOY%

P32

YOY%

P42

YOY%

 2016/17 

YOY%

UK retail sales

244.0

18%

96.8

16%

234.6

16%

122.8

10% 

698.2

16%

   EU retail sales

165.8

38%

83.1

36%

196.6

30%

98.6

36% 

544.1

34%

   US retail sales

82.7

42%

41.6

34%

94.4

26%

42.9

21% 

261.6

31%

   ROW retail sales

113.2

44%

62.0

70%

134.5

41%

62.9

23% 

372.6

42%

International retail sales

361.7

41%

186.7

45%

425.5

32%

204.4

28% 

1,178.3

36%

Total retail sales

605.7

30%

283.5

33%

660.1

26%

327.2 

21% 

1,876.5

27%

 

Year ended 31 August 20163

£m

P12

YOY%

P22

YOY%

P32

YOY%

P42

YOY%

 

 2015/16

YOY%

UK retail sales

206.2

25%

83.3

26%

203.1

28%

111.2

32%

603.8

27%

   EU retail sales

111.0

40%

56.9

17%

139.5

22%

67.5

30%

374.9

28%

   US retail sales

49.7

35%

27.1

32%

68.3

45%

34.1

47%

179.2

40%

   ROW retail sales

77.4

15%

33.0

-

87.4

17%

48.0

20%

245.8

14%

International retail sales

238.1

29%

117.0

14%

295.2

25%

149.6

29%

799.9

25%

Total retail sales

444.3

27%

200.3

19%

498.3

26%

260.8

30%

1,403.7

26%

 

 

1From 1 July 2016, constant currency is calculated to take account of hedged rate movements on hedged sales and spot rate movements on unhedged sales

2Periods are as follows:

P1: four months to 31 December

P2: two months to 28/29 February

P3: four months to 30 June

P4: two months to 31 August

3Restated to remove the results of the discontinued operation in China


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