Online fashion store ASOS has announced record sales and profit for the year to 31 August 2017, marginally ahead of expectations.
The company’s retail sales grew some 34% to £1,876.5m (2016: £1,403.7m), driven largely by a strong product, proposition improvements and further price investments across major markets.
Retail gross margin increased by 10bps to 48.6% (2016: 48.5%) as price investments in the US, Europe and some other territories around the world were offset by a higher full price mix.
Delivery receipts grew 18% aided by higher next-day delivery usage and the expansion of its Premier delivery service globally.
The rollout of ASOS's new technology platform, which delivers micro-service architecture with a fully native mobile experience in
The coming year will see a further acceleration for the firm, with plans to deliver many more customer enhancements, new payment methods, new language sites and stronger customer engagement.
Capacity and efficiency
In August, ASOS signed a lease for a new fulfilment centre in the US, which is expected to be operational by Autumn 2018.
“In a competitive UK market, we achieved strong full price performance whilst further increasing market share.
“At the same time, we ramped up our investment in building the increasingly strong and differentiated ASOS proposition.
“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.
The global clothing market continues to undergo significant channel shift, with growth online outstripping the overall market.
Online penetration will continue to increase and ASOS is well placed to capitalise on this shift in customer behaviour.
In the UK, the online apparel market has grown at more than twice the rate of the overall apparel market across the last five years.
Nick continued: “The new financial year shows continuing momentum in the business. The potential for our company remains huge.
“We are confident we are positioning ASOS to be the world's number one destination for
ASOS is a global fashion destination for 20-somethings that sells over 85,000 branded and own-label products through localised mobile and web experiences.
ASOS's websites attracted 135.7m visits during August 2017 (August 2016: 117.5m) and as of 31 August 2017 had 15.4m active customers (31 August 2016: 12.4m), of which 5.2m were located in the UK and 10.2m were located in international territories (31 August 2016: 4.7m in the UK and 7.7m internationally).
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