International Sales Drive Multibagger ASOS' Continued Growth
LONDON -- Online retailer ASOS (ISE: ASC.L) reported strong trading in its latest quarter statement released this morning, with its international business showing particularly strong growth and sales.
U.K. retail sales showed an increase of 15% year over year to 49.9 million pounds, while total international retail sales were up a huge 42% in Q4 to 91.2 million pounds, bringing the group total retail sales to 141 million pounds, up 31% from 2010-2011. This led to total group revenues also increasing by 31% to 145.2 million pounds.
The trading statement also noted that international sales now make up 65% of total sales, up from last year's figure of 60%, while ASOS had five million active customers as at the year-end of Aug. 31, a 35% increase year on year.
The full year to the end of August saw total retail sales increasing 38% from 2010-2011 to 538 million pounds, helped by a 94% rise in rest-of-world sales (up to 165.3 million pounds from 85.3 million pounds).
Chief executive officer Nick Robertson said:
Our sales performance in those markets where we have a website continue to outperform. Despite investing in our pricing, I'm pleased to say that our retail gross margin improved by 70bps over the period. Profit for the five months ended 31 August 2012, and pro forma full year, are expected to be in line with expectations, and we approach our new financial year with continued confidence.
In March 2004, the company's shares traded around 10 pence; today, they sit at over 20 pounds. Up 2.2%, or 45 pence, at the time of writing, investors still clearly see value in ASOS.
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The article International Sales Drive Multibagger ASOS' Continued Growth originally appeared on Fool.com.Sam Robson does not own shares in ASOS. The Motley Fool has adisclosure policy.
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