REG - ASOS PLC - Trading Statement

AsosAnnouncement

12/07/2018 07:05

RNS Number : 3715U
ASOS PLC
12 July 2018
 




12 July 2018
 
ASOS plc ("the Company")
 
Trading Statement for the four months ended 30 June 2018
 







Four months to 30 June


Ten months to 30 June




£m1


2018


2017


Reported Increase


CCY2 Increase


2018


2017


Reported Increase


CCY2 Increase




UK retail sales


288.0


234.6


23%


23%


702.5


575.4


22%


22%




  EU retail sales


257.4


196.6


31%


23%


606.5


445.5


36%


28%




  US retail sales


108.1


94.4


15%


22%


257.1


218.7


18%


25%




  ROW retail sales


149.2


134.5


11%


11%


367.9


309.7


19%


19%




International retail sales


514.7


425.5


21%


19%


1,231.5


973.9


26%


24%




Total retail sales


802.7


660.1


22%


21%


1,934.0


1,549.3


25%


23%










































Total group revenue3


823.9


675.8


22%


21%


1,982.0


1,587.3


25%


24%



1All numbers subject to rounding throughout this document, 2Constant currency is calculated to take account of 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 +22% on a reported basis and +21% in constant currency




·     


Continued market share gain in the UK with retail sales growth of +23%




·     


International sales growth of +21% as infrastructure and proposition investments continue




·     


Retail gross margin up 130bps, ahead of plan




·     


Continued strong customer engagement: active customers4 +20%, average basket value +1%, average order frequency5 +8%, conversion +10bps



 
Guidance:



·     


FY18 Sales within the +25-30% range, likely towards the lower end




·     


FY18 Gross margin guidance c.+100bps




·     


FY18 PBT expected to be in line with consensus6




·     


FY18 Capex guidance unchanged at £230-250m




·     


Medium term guidance unchanged; 20-25% sales growth p.a. at a c.4% EBIT margin



 
Nick Beighton, CEO, commented:
 
"I am pleased with the way the business has traded over the last four months and we are on track with our plans for the year. We delivered good sales growth, particularly in the UK, better than planned gross margin alongside significant progress on our infrastructure investments.
P4 trading has started well, particularly in terms of full price sell through. We remain confident of delivering another year of strong growth."
 
4Defined as having shopped in the last twelve months as at 30 June 2018, 5Calculated as last twelve months' total orders divided by active customers
6Company compiled consensus currently £101.0million as at 11 July 2018
 
Investor and Analyst conference call:
ASOS will be hosting a conference call for analysts and investors at 8.00am (UK Time) today. Please call Tom Berger at Instinctif Partners for dial-in details on 020 7457 2834 or email tom.berger@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








Greg Feehely, Director of Investor Relations
Website: www.asosplc.com/investors


















 
Instinctif Partners


 
Tel: 020 7457 2020




Matthew Smallwood / Justine Warren / Tom Berger 


 














 
JPMorgan Cazenove 


 
Tel: 020 7742 4000




Michael Wentworth-Stanley / Caroline Thomlinson / Bill Hutchings


















 
Numis Securities    


 
Tel: 020 7260 1000




Alex Ham / Luke Bordewich / Tom Ballard







 
 
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, selling cutting-edge fashion and offering a wide variety of fashion-related content, making ASOS.com the hub of a thriving fashion community. ASOS sells over 87,000 branded and 'ASOS Design' products through localised app and mobile/ desktop web experiences, delivering from fulfilment centres in the UK, US and Europe.  ASOS tailors the mix of ASOS design (our in house designed label), global and local brands sold through our own channels to deliver a locally relevant product offer.  Our global propositions help bring our amazing product to nearly every country in the world and we serve customers globally with increasingly tailored local experiences:  Relevant languages, payment methods and delivery and return options.  You can currently shop ASOS in over 200 markets, in 6 major global languages, using an ever greater number of different global payment methods, with hundreds of local delivery and returns options from pick and drop off networks in Italy to Next Day delivery to home in the Netherlands.  We aim to offer all our global customers a truly frictionless experience.
ASOS's websites attracted 180 million visits during June 2018 (June 2017: 146 million) and as at 30 June 2018 it had 18.0 million active customers1 (30 June 2017: 15.0 million), of which 5.8 million were located in the UK and 12.2 million were located in our international territories (30 June 2017: 5.2 million in the UK and 9.8 million internationally).
 
1Defined as having shopped in the last twelve months as at 30 June 2018
 
Appendix 1 - Retail sales growth by period in sterling
Year ending 31 August 2018



£m


P11


YOY%


P21


YOY%


P31


YOY%


P41


YOY%


 2017/18 YTD 


YOY%




UK retail sales


300.9


23%


113.6


17%


288.0


23%










702.5


22%




    EU retail sales


235.2


42%


113.9


37%


257.4


31%










606.5


36%




    US retail sales


102.4


24%


46.6


12%


108.1


15%










257.1


18%




    ROW retail sales


151.9


34%


66.8


8%


149.2


11%










367.9


19%




International retail sales


489.5


35%


227.3


22%


514.7


21%










1,231.5


26%




Total retail sales


790.4


30%


340.9


20%


802.7


22%










1,934.0


25%



 
Year ended 31 August 2017



 
£m


P11


YOY%


P21


YOY%


P31


YOY%


P41


YOY%


 2016/17 


YOY%




UK retail sales


244.0


18%


96.8


16%


234.6


16%


122.8


10% 


698.2


16%




   EU retail sales


165.8


49%


83.1


46%


196.6


41%


98.6


46% 


544.1


45%




   US retail sales


82.7


66%


41.6


54%


94.4


38%


42.9


26% 


261.6


46%




  ROW retail sales


113.2


46%


62.0


88%


134.5


54%


62.9


31% 


372.6


52%




International retail sales


361.7


52%


186.7


60%


425.5


44%


204.4


37% 


1,178.3


47%




Total retail sales


605.7


36%


283.5


42%


660.1


32%


327.2 


25% 


1,876.5


34%



 
Year ended 31 August 20162



 
£m


P11


YOY%


P21


YOY%


P31


YOY%


P41


YOY%


   2015/16   


YOY%




UK retail sales


206.2


25%


83.3


26%


203.1


28%


111.2


32%


603.8


27%




   EU retail sales


111.0


29%


56.9


14%


139.5


32%


67.5


30%


374.9


28%




   US retail sales


49.7


42%


27.1


38%


68.3


53%


34.1


67%


179.2


50%




   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%



 
 
1Periods 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
2Restated to remove the results of the discontinued operation in China
 
 
Appendix 2 - Retail sales growth by period at constant currency1
 
Year ending 31 August 2018



£m


P12


YOY%


P22


YOY%


P32


YOY%


P42


YOY%


 2017/18 YTD 


YOY%




UK retail sales


300.9


23%


113.6


17%


288.0


23%










702.5


22%




   EU retail sales


235.2


34%


113.9


29%


257.4


23%










606.5


28%




   US retail sales


102.4


28%


46.6


23%


108.1


22%










257.1


25%




   ROW retail sales


151.9


32%


66.8


7%


149.2


11%










367.9


19%




International retail sales


489.5


32%


227.3


20%


514.7


19%










1,231.5


24%




Total retail sales


790.4


28%


340.9


19%


802.7


21%










1,934.0


23%



 
Year ended 31 August 2017



 
£m


P12


YOY%


P22


YOY%


P32


YOY%


P42


YOY%


 2016/17 


YOY%




UK retail sales


244.0


18%


96.8


16%


234.6


16%


122.8


10% 


698.2


16%




   EU retail sales


165.8


38%


83.1


36%


196.6


30%


98.6


36% 


544.1


34%




   US retail sales


82.7


42%


41.6


34%


94.4


26%


42.9


21% 


261.6


31%




   ROW retail sales


113.2


44%


62.0


70%


134.5


41%


62.9


23% 


372.6


42%




International retail sales


361.7


41%


186.7


45%


425.5


32%


204.4


28% 


1,178.3


36%




Total retail sales


605.7


30%


283.5


33%


660.1


26%


327.2 


21% 


1,876.5


27%



 
Year ended 31 August 20163



£m


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%




   EU retail sales


111.0


40%


56.9


17%


139.5


22%


67.5


30%


374.9


28%




   US retail sales


49.7


35%


27.1


32%


68.3


45%


34.1


47%


179.2


40%




   ROW retail sales


77.4


15%


33.0


-


87.4


17%


48.0


20%


245.8


14%




International retail sales


238.1


29%


117.0


14%


295.2


25%


149.6


29%


799.9


25%




Total retail sales


444.3


27%


200.3


19%


498.3


26%


260.8


30%


1,403.7


26%



 
 
1From 1 July 2016, constant currency is calculated to take account of hedged rate movements on hedged sales and spot rate movements on unhedged sales
2Periods 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
3Restated to remove the results of the discontinued operation in China




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