Trading Statement
ASOS PLC
03 March 2005
FOR RELEASE
7.00am
3 March 2005
ASOS plc
('ASOS' or 'Group')
Leading on-line fashion retailer
TRADING UPDATE
* Profit before tax and goodwill amortisation for the year ended
31 March 2005 estimated at between £1.05m to £1.2m
(2004: proforma £625,172)
* January and February sales +120% and +140% respectively
* Strong post Christmas sales have compounded our warehouse
problems resulting in higher than budgeted operating costs
and markdowns
* Terms agreed on new 70,000 square foot warehouse - move planned
for mid - May 2005
* New General Manager of Distribution appointed
* 515,000 registered users as at 1 March 2005
* Confident that prospects remain bright
Nick Robertson, the Chief Executive, commented:
Following a review of current trading, I believe the business will generate a
profit before tax and goodwill amortisation in the region of £1.05m - £1.2m for
the year ended 31 March 2005.
This is a disappointment, given the strength of our other business performance
indicators and can be directly attributed to our short term warehousing
problems.
Operating out of four warehouses has led to a delay in stock appearing on the
website. As a result, we have had to heavily discount winter stock across
January and February, which should have been selling at full price
pre-Christmas.
This discounting has led to a significant increase in sales, well beyond
budgeted levels (January +120%, February +140%). As a consequence, we are
bearing the costs associated with very high sales volumes but without the gross
margin to support them.
On a positive note, I am pleased to report we have found a suitable 70,000
square foot warehouse, terms have been agreed and we expect to be in place by
mid-May. At the present time, we are operating out of 16,500 square feet spread
across four locations. In addition, we have appointed a General Manager of
Distribution, previously Head of Supply Chain at Hamleys to strengthen our
logistical team.
All other business indicators remain strong. Our registered user base is
515,000, an increase of 44,000 since 18 January 2005. We achieved second place
behind Next on the Hitwise ranking for Apparel and Accessories sites in both
January and February and traffic to the site in February was on a par with
Christmas levels.
I am confident that the prospects for ASOS remain very bright. We continue to
build the management team and infrastructure so as to efficiently manage
significant growth going forward.
For further information:
ASOS plc
Nick Robertson, Chief Executive Tel: 020 7240 7070
Jon Kamaluddin, Finance Director Tel: 020 7240 7070
www.asos.com
Beattie Financial
Brian Coleman-Smith / John Moriarty / Jo Clewlow Tel: 020 7398 3300
John Moriarty Mob: 07971 402 224
Seymour Pierce
Mark Percy / Ewan Leggat Tel: 020 7107 8000
Note to Editors:
ASOS plc is an Internet Retail and Marketing Services Group, established in June
2000 and admitted to AIM in October 2001.
Its principal business is ASOS.com, a leading online fashion and beauty
retailer. A top five company in the UK Apparel and Accessories category (Source:
Hitwise), ASOS.com has over 515,000 registered users at 1 March 2005. It offers
around 1,600 lines across womenswear, lingerie, menswear, jewellery,
accessories, footwear, beauty and gifting. Its primary customers are Internet
savvy 18-34 year olds.
UK Geographical Customer Distribution
Approximately 36% of the customers are in London and the South East, 14% in the
Midlands, 13% in Yorkshire and the North East, just under 13% in the North West,
7% in the South West, 9% in Scotland and 5% in Wales.
This information is provided by RNS
The company news service from the London Stock Exchange
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