Online clothing retailer ASOS (ASC.L) has raised its guidance for fiscal year 2018 reported sales after it registered a surge in profit during the 2017 year which was helped by an increase in orders and customer engagement.
The company, which sells over 85,000 branded and own-label products online, said that its sales guidance has been increased to 25-30% for the fiscal year 2018 inclusive of a modest currency tailwind, with earnings before interest and tax (EBIT) margins stable at approximately 4% in line with market consensus.
In the year to August 31, the company generated 1.92 billion pounds ($2.54 billion) in revenue, up 33% from the previous year, according to results published on Tuesday. Pre-tax profit rose by 145% to 80 million pounds and diluted earnings per share advanced by 161% to 76.6 pence over the same time frame.
The group reported retail sales growth of 34% during the year, with UK growth of 16% and international growth of 47%. International retail sales accounted for 63% of total retail sales.
Underpinning the results was a 30% jump in total orders shipped on a year-on-year basis, a 5% increase in average order frequency and a 24% gain in active customers.
“It’s been a great year for ASOS, with continued growth in sales and profits. Our international performance was excellent, as we reinvested FX tailwinds and benefited from our continually improving customer proposition,” Nick Beighton, chief executive of ASOS, said.
“Our new agile technology platform is allowing us to accelerate our pace of innovation with great benefits for our customers, including new payment methods and additional language sites to come. The investments we are making will see us add 1,000 new heads and will lay the foundations for a c. 60% increase in unit capacity and c.£4 billion of net sales,” he added.