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Last checked at 
12 Jan 2017 07:00
12 January 2017
ASOS plc ("the Company")
Trading Statement for the four months ended 31 December 2016
| Four months to 31 December | |||
£m1 | 2016 | 2015 | Reported Increase | CCY2 Increase |
UK retail sales | 244.0 | 206.2 | 18% | 18% |
US retail sales | 82.7 | 49.7 | 66% | 42% |
EU retail sales | 165.8 | 111.0 | 49% | 38% |
ROW retail sales | 113.2 | 77.4 | 46% | 44% |
International retail sales | 361.7 | 238.1 | 52% | 41% |
Total retail sales | 605.7 | 444.3 | 36% | 30% |
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Total group revenue3 | 621.3 | 457.1 | 36% | 30% |
1All numbers subject to rounding
2Constant currency has been calculated to take into account hedged rate movements on hedged sales and spot rate
movements on unhedged sales
3Includes retail sales, delivery receipts and third party revenues
Highlights include:
· Retail sales grew strongly, +36% on a reported basis and +30% on a constant currency basis as investments in pricing and proposition continued to gain traction
· Strong performance in the UK with retail sales growth of +18% in a more promotional market
· International retail sales accelerated to +52% aided by the reinvestment of the FX tailwind resulting from sterling weakness and US import duty benefits
· Retail gross margin down 30bps on prior year, in line with plan
· Continued strong customer engagement: active customers4 +25%, average basket value +2%, average order frequency +6%
· Total orders shipped 15.5m, +35% year on year
4Defined as having shopped in the last twelve months
Guidance:
· Medium term reported sales growth guidance remains unchanged at c.20-25% p.a.
· Following reinvestment of FX and US duty benefits largely into price, guidance for FY17 reported sales growth is increased to c.25-30%
· Including enhanced reinvestment, we remain confident of delivering current market consensus PBT expectations for the year
· Capital expenditure is now expected to be in the £150-170m range for the current financial year
Nick Beighton, CEO, commented:
"Following record sales over Cyber weekend and the Christmas trading period, I'm pleased to report a strong start to the year. A 50% plus increase in international sales is a standout performance. UK sales growth at 18% was a strong performance in a more promotional market.
With sales for the year now expected to be up by c.25 to 30%, we're accelerating our infrastructure investment to handle that growth. ASOS remains well set to meet its longer-term ambitions as a result of the hard work and commitment of the team".
Investor and Analyst conference call:
ASOS will be hosting a conference call for analysts and investors at 7:45am (UK Time) today. Please call Guy Scarborough at Instinctif Partners for dial-in details on 020 7457 2047 or email guy.scarborough@instinctif.com.
A recording of this conference call will be available on the ASOS Plc investor centre website later today: http://www.asosplc.com/investors.aspx
For further information:
ASOS plc | Tel: 020 7756 1000 |
Nick Beighton, Chief Executive Officer |
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Helen Ashton, Chief Financial Officer Greg Feehely, Director of Investor Relations Website: www.asosplc.com/investors |
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Instinctif Partners |
Tel: 020 7457 2020 |
Matthew Smallwood / Justine Warren / Guy Scarborough |
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JPMorgan Cazenove |
Tel: 020 7742 4000 |
Michael Wentworth-Stanley / Caroline Thomlinson |
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Numis Securities |
Tel: 020 7260 1000 |
Alex Ham / Luke Bordewich |
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Forward looking statements:
This announcement may include statements that are, or may be deemed to be, "forward-looking statements" (including words such as "believe", "expect", "estimate", "intend", "anticipate" and words of similar meaning). By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances, and actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect management's view with respect to future events as at the date of this announcement. Save as required by applicable law, the Company undertakes no obligation to publicly revise any forward-looking statements in this announcement, whether following any change in its expectations or to reflect events or circumstances after the date of this announcement.
Background note:
ASOS is a global fashion destination for 20-somethings. We sell cutting-edge fashion and offer a wide variety of fashion-related content, making ASOS.com the hub of a thriving fashion community. We sell over 85,000 branded and own-brand products through localised mobile and web experiences, delivering from our fulfilment centres in the UK, US and Europe to almost every country in the world.
We tailor the mix of own-label, global and local brands sold through each of our eight local language websites: UK, US, France, Germany, Spain, Italy, Australia and Russia.
ASOS's websites attracted 139 million visits during December 2016 (December 2015: 114 million) and as at 31 December 2016 it had 13.4 million active customers1 (31 December 2015: 10.7 million), of which 4.9 million were located in the UK and 8.5 million were located in our international territories (31 December 2015: 4.2 million in the UK and 6.5 million internationally).
1Defined as having shopped in the last twelve months
Appendix 1 - Retail sales growth by period in sterling
Year ending 31 August 2017
£m1 | P12 | YOY% | P22 | YOY% | P32 | YOY% | P42 | YOY% | 2016/17 YTD | YOY% |
UK retail sales | 244.0 | 18% |
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| 244.0 | 18% |
US retail sales | 82.7 | 66% |
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| 82.7 | 66% |
EU retail sales | 165.8 | 49% |
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| 165.8 | 49% |
ROW retail sales | 113.2 | 46% |
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| 113.2 | 46% |
International retail sales | 361.7 | 52% |
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| 361.7 | 52% |
Total retail sales | 605.7 | 36% |
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| 605.7 | 36% |
Year ending 31 August 2016
£m1 | P12 | YOY% | P22 | YOY% | P32 | YOY% | P42 | YOY% |
2015/16 | YOY% |
UK retail sales | 206.2 | 25% | 83.3 | 26% | 203.1 | 28% | 111.2 | 32% | 603.8 | 27% |
US retail sales | 49.7 | 42% | 27.1 | 38% | 68.3 | 53% | 34.1 | 67% | 179.2 | 50% |
EU retail sales | 111.0 | 29% | 56.9 | 14% | 139.5 | 32% | 67.5 | 30% | 374.9 | 28% |
ROW retail sales | 77.4 | 3% | 33.0 | (5%) | 87.4 | 16% | 48.0 | 21% | 245.8 | 9% |
International retail sales | 238.1 | 21% | 117.0 | 12% | 295.2 | 31% | 149.6 | 34% | 799.9 | 25% |
Total retail sales | 444.3 | 23% | 200.3 | 18% | 498.3 | 30% | 260.8 | 33% | 1,403.7 | 26% |
Year ending 31 August 2015
£m1 | P12 | YOY% | P22 | YOY% | P32 | YOY% | P42 | YOY% | 2014/15 | YOY% |
UK retail sales | 165.5 | 24% | 65.9 | 36% | 158.4 | 27% | 84.1 | 29% | 473.9 | 27% |
US retail sales | 34.9 | 8% | 19.6 | 35% | 44.5 | 43% | 20.5 | 41% | 119.5 | 29% |
EU retail sales | 86.3 | (1%) | 49.9 | 24% | 105.8 | 21% | 51.9 | 26% | 293.9 | 15% |
ROW retail sales | 75.3 | (8%) | 34.7 | 8% | 75.1 | (1%) | 39.7 | 3% | 224.8 | (2%) |
International retail sales | 196.5 | (3%) | 104.2 | 20% | 225.4 | 16% | 112.1 | 19% | 638.2 | 10% |
Total retail sales | 362.0 | 8% | 170.1 | 26% | 383.8 | 20% | 196.2 | 23% | 1,112.1 | 17% |
1 All numbers subject to rounding
2 Periods are as follows:
P1: four months to 31 December
P2: two months to 28/29 February
P3: four months to 30 June
P4: two months to 31 August
Appendix 2 - Retail sales growth by period at constant currency1
Year ending 31 August 2017
£m2 | P13 | YOY% | P23 | YOY% | P33 | YOY% | P43 | YOY% | 2016/17 YTD | YOY% |
UK retail sales | 244.0 | 18% |
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| 244.0 | 18% |
US retail sales | 82.7 | 42% |
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| 82.7 | 42% |
EU retail sales | 165.8 | 38% |
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| 165.8 | 38% |
ROW retail sales | 113.2 | 44% |
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| 113.2 | 44% |
International retail sales | 361.7 | 41% |
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| 361.7 | 41% |
Total retail sales | 605.7 | 30% |
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| 605.7 | 30% |
Year ending 31 August 2016
£m2 | P13 | YOY% | P23 | YOY% | P33 | YOY% | P43 | YOY% |
2015/16 | YOY% |
UK retail sales | 206.2 | 25% | 83.3 | 26% | 203.1 | 28% | 111.2 | 32% | 603.8 | 27% |
US retail sales | 49.7 | 35% | 27.1 | 32% | 68.3 | 45% | 34.1 | 47% | 179.2 | 22% |
EU retail sales | 111.0 | 40% | 56.9 | 17% | 139.5 | 22% | 67.5 | 30% | 374.9 | 26% |
ROW retail sales | 77.4 | 15% | 33.0 | 0% | 87.4 | 17% | 48.0 | 20% | 245.8 | 6% |
International retail sales | 238.1 | 29% | 117.0 | 14% | 295.2 | 25% | 149.6 | 29% | 799.9 | 17% |
Total retail sales | 444.3 | 27% | 200.3 | 19% | 498.3 | 26% | 260.8 | 30% | 1,403.7 | 21% |
Year ending 31 August 2015
£m2 | P13 | YOY% | P23 | YOY% | P33 | YOY% | P43 | YOY% | 2014/15 | YOY% |
UK retail sales | 165.5 | 24% | 65.9 | 36% | 158.4 | 27% | 84.1 | 29% | 473.9 | 27% |
US retail sales | 34.9 | 9% | 19.6 | 25% | 44.5 | 31% | 20.5 | 31% | 119.5 | 22% |
EU retail sales | 86.3 | 6% | 49.9 | 34% | 105.8 | 37% | 51.9 | 41% | 293.9 | 26% |
ROW retail sales | 75.3 | (3%) | 34.7 | 14% | 75.1 | 5% | 39.7 | 14% | 224.8 | 5% |
International retail sales | 196.5 | 3% | 104.2 | 25% | 225.4 | 23% | 112.1 | 28% | 638.2 | 17% |
Total retail sales | 362.0 | 11% | 170.1 | 29% | 383.8 | 25% | 196.2 | 29% | 1,112.1 | 21% |
1From 1 July 2016, constant currency has been calculated to take into account hedged rate movements on hedged sales and spot rate movements on unhedged sales as this more closely reflects reality. Prior to this, the calculation only took into account spot rate movements on total sales.
2All numbers subject to rounding
3Periods are as follows:
P1: four months to 31 December
P2: two months to 28/29 February
P3: four months to 30 June
P4: two months to 31 August
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