ASOS Booms In UK But Unravels Abroad

Written By Unknown on Rabu, 10 Desember 2014 | 00.26

Online fashion group ASOS has seen a slowdown in its quarterly sales, as international purchases continue to contract.

This comes on the back of the company being a big beneficiary of the online sales frenzy prompted by Black Friday and Cyber Monday.

It reported a 24% rise in UK retail sales in the three months to the end of November.

However the weakening eurozone economy has hit its core sales figures, as international sales dropped 2%.

Non-UK sales made up 63% of total revenue in the same quarter last year but have now dropped to 57% this year.

Investors found the results lukewarm after they were released on Tuesday, with ASOS' share price dropping 5% in midday trades.

ASOS shares have fallen more than 60% in the last 12 months, as it issued three profit warnings.

The Barnsley-based online retailer said September and October were difficult as it installed a mechanised order picking system ahead of the Christmas rush.

ASOS said total retail sales rose 8% in the latest quarter to £246m, its fiscal first quarter, down 15% on the previous quarter.

Chief executive Nick Robertson said international trading conditions remain "challenging", due in part to the strength of sterling.

The company said it received a £6.3m insurance payout related to the depot fire, which it was using to bring down international prices.

The retailer said it expects to meet forecasts for flat profits in 2014-15, after previously forecasting sales growth of 15-20% in the current financial year.


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