REG - ASOS PLC - Trading Statement
15/06/2023 07:00
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RNS Number : 7667C ASOS PLC 15 June 2023
15 June 2023
ASOS plc (the "Company")
Global Online Fashion Destination
Trading Statement for the three months ended 31 May 2023
Return to profitability as "Driving Change" agenda delivers.
FY23 guidance reiterated.
Summary financial results
Three months to 31 May Nine months to 31 May
£m 2023 2022 CCY(1) change 2023 2022 CCY(1) change
CCY(1,2,3) change (adjusted) CCY(1,2,3) change (adjusted)
Reported change Reported change
UK total sales 370.3 431.8 (15%) (14%) (14%) 1,174.0 1,327.3 (12%) (12%) (12%)
EU total sales 283.5 294.0 (8%) (7%) (4%) 870.1 871.4 (3%) (2%) -%
US total sales 121.2 141.9 (21%) (20%) (15%) 390.4 394.6 (12%) (12%) (1%)
ROW total sales 83.9 96.4(4) (14%) (14%) (13%) 265.0 374.9(4) (13%) (31%) (29%)
Total group revenue(5) 858.9 964.1(4) (14%) (13%) (11%) 2,699.5 2,968.2(4) (9%) (11%) (9%)
Strategic update and P3 results summary
The Company continues to execute on its Driving Change agenda. The following
progress was made during the period(3):
· Return to profitability with P3 adjusted earnings before interest
and tax ("EBIT") up more than £20m year-on-year ("YoY") and EBIT margin up
250bps YoY. On-track to deliver adjusted EBIT guidance of £40-60m in H2 FY23.
· This return to profit came despite revenue down 14%, as expected,
and reflecting deliberate actions on capital allocation to improve
profitability.
· c.£200m of profit optimisation and cost savings realised
year-to-date ("YTD"). On track to deliver c.£300m of benefits targeted in
FY23, which equates to c.£385m of gross annualised benefits.
· Profit per order up over 30%(6) YTD versus last year driven by
actions taken to improve profitability of underperforming brands and
geographies.
· Adjusted gross margin(7) up 350bps YoY supported by freight
(c.200bps) and improvements in realised selling value and sourcing.
· Inventory down by c.15% on FY22, consistent with the target of a
c.20% reduction by FY23, with 86% of stock less than 12 months old. H2 FY23
intake -36% YoY with option count down 30%. H1 FY24 intake expected to be down
33% YoY with option count -13%.
· Active customers(8) down by 0.8m from the 24.9m reported at H1
FY23, reflecting a continued focus on improving the profitability of sales
over the pursuit of growth at any cost.
· As announced on 25 May, the Company strengthened its balance
sheet through a new, long-term £275m financing facility and c.£80m equity
raise. The new capital structure provides ASOS with increased resilience and
significant flexibility, free of any profit-based covenants. It is fully
aligned with ASOS' shift to its new commercial model, which includes reducing
inventory, faster clearance of unsold stock and improving stock turn.
· The return to profitability and cash generation in H2 FY23 and
beyond will further strengthen the balance sheet. H2 FY23 and full-year FY23
expectations are unchanged from the guidance issued in the H1 FY23 results
announcement on 10 May 2023(9).
CEO review
Why is this the right plan?
At our FY22 results announcement, we reported net debt of £153m, down from a
net cash position of £200m in FY21 and £408m in FY20. This decline was
predominantly driven by the purchase of too much stock, with FY21 and FY22
intake c.50% higher than in the preceding two years. The issue was compounded
by the sharp bounce back of store-based retail post-pandemic and the Russian
invasion of Ukraine, which both triggered a deterioration in the global
macroeconomic backdrop and resulted in ASOS exiting its Russian operations on
2 March 2022. We closed FY22 with £1.1bn of inventory, twice the size of our
stock balance in FY20. In two years, the c.£560m increase in our net debt
position was broadly equal to the c.£550m increase in our stock. While
underlying issues were undoubtedly compounded by unpredictable demand and
disrupted supply chains during the pandemic, it was clear that significant
changes were required to the way the business was operating.
To do this, in October 2022 we set out four key pillars of our Driving Change
agenda: 1. Renewed commercial model; 2. Stronger order economics and lighter
cost profile; 3. Robust and flexible balance sheet; 4. Reinforced leadership
& culture. But what does this really mean? We put in place a plan to turn
the business around: to right-size our stock; to generate cash; to reduce our
net debt; and to structurally improve our profitability. We started this
turnaround process by taking decisive action on the most urgent issues and
bringing in the people we need to make this happen.
We now have: i) long-term financing in place which provides significant
flexibility, free of any profit-based covenants and giving us ample headroom
to take the action we need to reset our commercial model and right-size our
stock; and ii) the leadership team in place that can drive this turnaround,
complementing the talent that built ASOS as a disruptive force with external
experience and perspective that can make us even better. We have reduced
inventory by 15% YTD and 86% of our current stock is less than 12 months old.
We will reduce inventory levels by c.20% by FY23 year-end, supported by a
reduction in H2 FY23 intake of 36%. A further significant reduction is
expected in FY24 that will return inventory days to pre-Covid levels (reducing
stock levels below £600m) and underpin a material improvement in cash
generation next financial year.
It's now about completing the right-sizing of our stock, which will further
restore our balance sheet; and continuing to improve profitability so we can
grow again while generating cash. Or put another way:
1. We turn the stock we have into cash and buy less stock;
2. We improve profit per order by: i) improving our gross margin (our
sourcing, buying, pricing); and ii) focusing on profitable orders
(particularly internationally);
3. With a profitable base established, we grow again by investing into
customer acquisition and lifetime value.
There is no instant fix and the necessary changes will take some time, but we
are making great progress. Taking each in turn:
1. We turn our stock into cash and buy less stock:
We are in the process of turning our stock into cash, which is driving our
cash inflow in H2 FY23 and will also be a key driver of the material cash
inflow we expect in FY24. The chart below demonstrates the mismatch between
our intake and sell-through during FY21 and FY22, leading to the build-up of
stock described above. While it can make sense that intake would be higher
than sell-through when the business is growing, this should not be the case
when sales are declining.
*For illustrative purposes
The difference between the sell-through of our stock compared to how much we
buy will create a significant cash inflow in FY23 and FY24, as can be seen in
the chart below. However, intake cannot be optimally reduced overnight and the
process can create a temporary drag on sales as options are reduced.
At the time that our new approach was agreed, Spring/Summer 2023 (H2 FY23)
orders had already been placed. This meant that reducing intake volume by 36%
came predominantly through cutting options, rather than scaling back volume
per option. This resulted in option count contraction of 30% with a consequent
negative impact on sales. As we have placed new orders for Autumn/Winter 2023
(H1 FY24), it has been possible in many cases to reduce volume per option and
hence create a more optimal stock profile offering better width to customers.
For H1 FY24, we will reduce intake by 33% and option count by 13% YoY.
*For illustrative purposes
You might then question whether we can really sell this stock. Within the
£1.1bn of stock we held at FY22, there was a proportion of old stock we felt
could not be cleared efficiently through the ASOS platform. This amounted to
c.£130m of stock written off(10), which has mostly been extracted from our
core network and is being cleared through external channels. With the oldest
stock written off, we believe the remaining stock can be cleared through our
platform in the normal course of business. This will mean we temporarily have
more stock being cleared on promotion than we would ideally like under our new
commercial model. However, this is reflected in our H2 gross margin guidance
which gives us the flexibility to be more aggressive with our markdown, if
necessary, to achieve the planned c.20% YoY reduction in inventory by
year-end. We expect strong progress on clearing our stock through our platform
over the next 12 months, generating a significant cash inflow in the process.
Under our new commercial model, when we don't sell out in-season, we will
clear stock faster. We will clear high fashion product after one season, while
continuity product (for example denim, where shapes can stay relevant for
several seasons) will typically be cleared after two seasons (i.e. product
bought for Spring/Summer 2023 cleared after Spring/Summer 2024). This
ultimately leads to a better realised price as discounting closer to the
season requires shallower markdown. At present, 10% of our stock is less than
4 weeks old, 55% of stock is less than 26 weeks old and 86% of stock is less
than 52 weeks old. Most of the stock we currently hold has therefore only been
through one season and less than 25% was carried forward from FY22.
Our experience in the current trading environment is that when we create a
product that really resonates with our customers and is priced correctly,
full-price sales are very strong. Learning from this experience, we have taken
steps to improve the value for money of own-brand product. As a direct
consequence of improvements to our sourcing and buying we can lower our prices
or improve quality in own-brand, which should mean we can sell more while
generating the same margin.
This approach is not revolutionary: internally, our strategy is known as 'Back
to Basics' because that's what it is. The build-up of stock based on ASOS'
view of e-commerce as having an 'infinite aisle' was exacerbated by the
perfect storm created by unpredictable demand and global supply chain
disruption. While it's a frustrating issue to solve, we have a clear plan to
fix things and we are making great progress.
2. We improve profit per order by: i) improving our gross margin and ii)
focusing on profitable orders
The new commercial model described above will, put simply, improve the
realised selling price of our stock. This will have a positive impact on gross
margin. We have also brought talent into the business to help us source
product more efficiently. This will lower the cost of our sourcing and we are
already seeing the benefits in our stock intake.
As well as this improvement in gross margin, we have taken action to improve
our order profitability. The target we set for FY23 was to take profitability
measures and lower costs to offset the c.£300m of inflation and other
headwinds we expected in the year. A small proportion of these actions were
one-off in nature, but the vast majority involved structural improvements to
profitability, for example the removal of unprofitable non-strategic brands
from the platform and the rebalancing of our shipping and returns proposition
internationally where our investment failed to generate an adequate return.
These changes have underpinned more than a 30%(8) improvement in profit per
order YTD compared to the same period last year. We have now delivered
c.£200m of benefit YTD and are on-track to achieve our target of c.£300m by
year-end, fully offsetting the headwinds in our cost base. The annualised
benefit of these actions (gross of inflation) is c.£385m, with the c.£85m of
incremental benefit in FY24 mostly realised in H1. These actions will
structurally improve the profitability of the business to generate EBITDA in
excess of cash interest, lease costs and capex.
3. We grow again by investing into customer acquisition and lifetime value
It is too early for us to outline the growth strategy for ASOS. We must first
deliver on our target of turning our stock into cash and improving our
profitability. However, the best way to create the conditions to grow is to
offer again the best combination of fashion and excitement. This is precisely
what we are doing. It is important to confirm our belief that as we restore
ASOS to offering fashion-loving consumers the best product, with unique
styling and an inspirational shopping experience, we can grow our customer
base.
How will this impact our supply chain?
ASOS has developed strong relationships with its suppliers over the last two
decades, based on the mutual benefit that those partnerships provide. Our
assortment is sourced from over 1,000 suppliers across our own brands and the
best fashion brands on the planet. Our own brands account for c.40% of our
revenues and are available exclusively on the ASOS platform (with the
exception of our joint venture with Nordstrom in the US). We complement this
own-brand offering with a curated range of fashion-focused product from c.900
brand partners who are attracted to ASOS by our unique creative lens and deep
understanding of a customer base that is often hard to reach. Our model is
highly resilient, with no single partner brand accounting for more than 6% of
our total revenues.
However, we have started to further improve the efficiency of our supply chain
across both our own brands and partner brands. Across both channels, we are
improving the shape of our buy - buying more of expected best-sellers (backing
the winners) and reducing intake on the long-tail. In own brand, we are
accelerating our speed to market through two key initiatives: i) the
expansion of our Test and React model, which cut lead times from c.20 weeks to
c.2 weeks in our recent trial; and ii) better leveraging relationships with
our best suppliers to remove unnecessary administrative processes, which can
increase speed and lower cost. It may also mean consolidating some of our
own-brand suppliers or relocating some of our sourcing. On the partner brands
side, we have already removed unprofitable, non-strategic brands from some or
all territories and we are rolling out Partner Fulfils and ASOS Fulfilment
Services models to offer increased width and / or depth in the assortment
without the associated inventory risk.
The strength our of partnerships is best demonstrated by the fact that,
despite the reduction in volume purchased by ASOS over the last six months and
the ongoing consolidation of our supplier base, ASOS has not lost any
relationship with a top 100 supplier.
At our H1 FY23, we reported trade and other payables of £837m. Around one
third of this balance relates to stock payables, one third relating to
non-stock payables and accruals, and the remainder relating to returns,
deferred revenue and VAT payables. We typically pay our suppliers within 40-70
days depending on our agreed terms which typically involves a trade-off
between cost and speed of payment (for example, many suppliers give discounts
or rebates for faster payment). We have seen some tightening in the market
over the last 6-12 months and prudently anticipate that this will continue. We
estimate broadly 20% of our trade payables (by value) was previously covered
by third party trade credit insurers, who we understand have now removed or
cut cover. However, this is manageable, we continue to pay to terms and we
expect any negative impact on cashflow to be modest.
What were the key considerations in our refinancing?
During the period, ASOS strengthened its balance sheet through a new long-term
£275m financing facility alongside a cash placing of new ordinary shares
which raised gross proceeds of c.£80m. As is typical of financing from
traditional lenders, our previous financing facility was subject to Net
Debt/EBITDA and Interest Cover covenants. The new asset-based financing
facility provides simplicity under a single lender and is subject only to a
minimum liquidity covenant (i.e. there are no profit-based covenants). It
provides the stability of a structure in place to April 2026, with the
flexibility to exit early or extend for an additional 12 months. These were
key factors when determining the right financing structure to enable the
business to focus solely on actions that will drive long-term value creation,
free of any potential distortion from managing for short term
maintenance-based covenants. The estimated annual cash interest cost of the
new facilities is c.£30m.
Outlook
ASOS will retain its focus on profitable sales and its commitment to reducing
inventory for the remainder of FY23. Expectations for H2 FY23 and full-year
FY23 are unchanged from guidance issued in the H1 FY23 results announcement on
10 May 2023, as updated on 25 May to account for the cash costs of
re-financing. As such, we are on track to build on the more than £400m of
cash and undrawn facilities reported at H1 FY23 over the course of H2 FY23.
While the Company remains cautious on top-line outlook for the year ahead, the
actions taken will continue to have a positive impact on profitability and
cashflow. As such, the Company expects material cash generation in FY24 and
therefore a further reduction in net debt.
José Antonio Ramos Calamonte, Chief Executive Officer, said:
"We continue to focus on making ASOS the best possible destination for our
fashion-loving customers. At the same time, we are delivering on our plan to
turn the business around: to right-size our stock; to generate cash; to reduce
our net debt; and to structurally improve our profitability. I am confident in
the direction we are going, we have restored profitability in the period and
made good progress in clearing through our inventory to generate cash. We
retain ample balance sheet flexibility and reiterate our expectations for
improved profitability, cash generation and reduction in net debt in H2 FY23
and beyond."
Notes
(1) Constant currency is calculated to take account of hedged rate movements
on hedged sales and spot rate movements on unhedged sales.
(2) Adjusted revenue excludes non-underlying jobber income associated with the
transition to the new Commercial Model of £6.1m in P3 FY23 and £8.2m in P3
FY23 YTD.
(3) All numbers subject to rounding throughout this document. Revenue is
stated at constant currency, adjusted for non-underlying items and excludes
Russia from the P3 YTD FY22 comparative base period following the decision to
suspend trade in Russia on 2 March 2022, unless otherwise stated. Any other
adjusted measures exclude non-underlying items.
(4) RoW and Group total sales for P3 FY22 and P3 FY22 YTD have been restated.
This restatement relates to the removal of the £19.3m gain on RUB hedges,
which was reported as revenue at P3 FY22 but subsequently reallocated to other
income at year-end FY22.
(5) Includes retail sales, wholesale and income from other services comprising
delivery receipt payments, marketing services and commission on
partner-fulfilled sales.
(6) Profit per order based on variable contribution. YTD profit per order
based off September 2022 - April 2023 data ( )vs September 2021- April 2022.
(7) Adjusted gross margin excludes the P3 FY23 gross profit impact of the
stock write-off of £1.8m announced at FY22. Comparative gross margin for P3
FY22 is restated to 42.8% to remove the £19.3m gain on RUB hedges, which was
reported within revenue at P3 FY22 but subsequently reallocated to other
income at year-end FY22.
(8) Active customers including those in Russia who shopped in the last 12
months as at 31 May 2023 total 24.1m (as at 31st May 2022: 26.5m); excluding
Russia 24.1m (as at 31st May 2022: 25.6m).
(9) Updated for an increase in the H2 FY23 cash cost of refinancing from
c.£25m to c.£45m in the announcement of the refinancing of 25 May 2023.
(10) Relates to the non-underlying stock write off in relation to the new
commercial model announced at the FY22 results announcement.
Investor and Analyst conference call:
ASOS will be hosting a conference call for analysts and investors at 8.00am
(UK time) on 15(th) June 2023. To access live please dial +44 20 3936 2999 /
+44 800 358 1035, and use passcode: 303363
A recording of this webcast will be available on the ASOS Plc website later
today: https://www.asosplc.com/investor-relations/
For further information:
ASOS Tel: 020 7756 1000
plc
Jose Antonio Ramos Calamonte, Chief Executive Officer
Sean Glithero, Interim Chief Financial Officer
Michelle Wilson, Senior Director of Strategy and Corporate Development
Holly Cassell, Head of Investor Relations
Website: www.asosplc.com/investors
Headland Consultancy Tel: 020 3805 4822
Susanna Voyle / Stephen Malthouse / Rob Walker
JPMorgan Cazenove Tel: 020 7742 4000
Bill Hutchings / Will Vanderspar
Numis Securities Tel: 020 7260 1000
Alex Ham / Jonathan Wilcox / Tom Jacob
Berenberg
Tel: 020 3207 7800
Matthew Armitt / Richard Bootle / Marie Moy
Background note
ASOS is a destination for fashion-loving 20-somethings around the world, with
a purpose to give its customers the confidence to be whoever they want to be.
Through its app and mobile/desktop web experience, available in nine languages
and in over 200 markets, ASOS customers can shop a curated edit of nearly
60,000 products, sourced from nearly 900 global and local third-party brands
alongside a mix of fashion-led own-brand labels - ASOS Design, ASOS Edition,
ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge and
HIIT. ASOS aims to give all of its customers a truly frictionless experience,
with an ever-greater number of different payment methods and hundreds of local
deliveries and return options, including Next-Day Delivery and Same-Day
Delivery, dispatched from state-of-the-art fulfilment centres in the UK, US
and Germany.
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.
Appendix 1 - Total sales growth by period in sterling, including Russia
Year ending 31 August 2023
£m P1(1) YOY% P2(1) YOY% P3(1) YOY% P4(1) YOY% 2022/23 YTD YOY%
UK total sales 591.3 (8%) 212.4 (15%) 370.3 (14%) 1,174.0 (12%)
EU total sales 417.3 7% 169.3 (10%) 283.5 (4%) 870.1 -%
US total sales 198.1 15% 71.1 (11%) 121.2 (15%) 390.4 (1%)
ROW total sales 129.8 (30%) 51.3 (45%) 83.9 (13%) 265.0 (29%)
Total sales(3) 1,336.5 (4%) 504.1 (17%) 858.9 (11%) 2,699.5 (9%)
Year ended 31 August 2022 ( )
P1(1) YOY% P2(1) YOY% P3(1) YOY% P4(1) YOY% 2021/22 YOY%
£m
UK total sales 645.2 13% 250.3 (2%) 431.8 4% 435.5 6% 1,762.8 7%
EU total sales 390.2 (3%) 187.2 (3%) 294.0 (5%) 298.6 6% 1,170.0 (1%)
US total sales 172.6 7% 80.1 13% 141.9 21% 136.8 18% 531.4 14%
ROW total sales 185.1 (20%) 93.4 1% 96.4(2) (33%) 97.4 (30%) 472.3 (22%)
Total sales(3) 1,393.1 2% 611.0 -% 964.1(2) (2%) 968.3 2% 3,936.5 1%
Year ended 31 August 2021
P1(1) YOY% P2(1) YOY% P3(1,4) YOY% P4(1,4) YOY% 2020/21 YOY%
£m
UK total sales 571.3 35% 254.5 46% 415.9 85% 410.3 5% 1,652.0 36%
EU total sales 400.6 18% 193.8 22% 310.1 33% 280.8 (6%) 1,185.3 15%
US total sales 161.7 12% 71.2 8% 117.5 25% 115.8 4% 466.2 12%
ROW total sales 230.5 16% 92.3 1% 144.5 2% 139.7 (19%) 607.0 1%
Total sales(3) 1,364.1 23% 611.8 25% 988.0 43% 946.6 (3%) 3,910.5 20%
(1) Periods are as follows:
P1: four months to 31 December
P2: two months to 28/29 February
P3: three months to 31 May
P4: three months to 31 August
(2) In the tables above RoW and Group total sales for P3 have been restated.
This restatement relates to the removal of the £19.3m gain on RUB hedges,
which was reported as revenue at P3 but subsequently reallocated to other
income at year-end 2022.
(3) Includes retail sales, wholesale and income from other services comprising
delivery receipt payments, marketing services and commission on
partner-fulfilled sales.
(4) P3 is restated to reflect only March, April, and May. P4 has been restated
to include June.
Appendix 2 - Total sales growth by period at constant currency, including
Russia
Year ending 31 August 2023
£m P1(1) P2 (1) P3 (1) P4 (1) 2022/23
YOY% YOY% YOY% YOY% YOY%
UK total sales (8%) (15%) (14%) (12%)
EU total sales 6% (12%) (7%) (2%)
US total sales (2%) (20%) (20%) (12%)
ROW total sales (31%) (46%) (14%) (31%)
Total sales(3) (6%) (20%) (13%) (11%)
Year ended 31 August 2022
P1(1) P2 (1) P3 (1) P4 (1) 2021/22
£m YOY% YOY% YOY% YOY% YOY%
UK total sales 13% (2%) 4% 6% 7%
EU total sales 2% 1% (2%) 9% 2%
US total sales 11% 12% 15% 4% 10%
ROW total sales (15%) 2% (33%)(2) (31%) (20%)
Total sales(3) 5% 1% (2%)(2) 1% 2%
Year ended 31 August 2021
P1(1) P2 (1) P3 (1,4) P4 (1,4) 2020/21
£m YOY% YOY% YOY% YOY% YOY%
UK total sales 35% 46% 85% 5% 36%
EU total sales 17% 20% 34% (7%) 15%
US total sales 16% 13% 40% 15% 21%
ROW total sales 20% 9% 10% (14%) 6%
Total sales(3) 24% 26% 47% (1%) 22%
( )
(1) Periods are as follows:
P1: four months to 31 December
P2: two months to 28/29 February
P3: three months to 31 May
P4: three months to 31 August
(2) In the tables above RoW and Group total sales for P3 have been restated.
This restatement relates to the removal of the £19.3m gain on RUB hedges,
which was reported as revenue at P3 but subsequently reallocated to other
income at year-end 2022.
(3) Includes retail sales, wholesale and income from other services comprising
delivery receipt payments, marketing services and commission on
partner-fulfilled sales.
(4) P3 is restated to reflect only March, April, and May. P4 has been restated
to include June.
Appendix 3
Total sales growth by period in sterling, excluding Russia
Year ending 31 August 2023
£m P1(1) YOY% P2(1) YOY% P3(1) YOY% P4(1) YOY% 2022/23 YTD YOY%
UK total sales 591.3 (8%) 212.4 (15%) 370.3 (14%) 1,174.0 (12%)
EU total sales 417.3 7% 169.3 (10%) 283.5 (4%) 870.1 -%
US total sales 198.1 15% 71.1 (11%) 121.2 (15%) 390.4 (1%)
ROW total sales 129.8 (9%) 51.3 (14%) 83.9 (13%) 265.0 (11%)
Total sales(2) 1,336.5 (1%) 504.1 (13%) 858.9 (11%) 2,699.5 (7%)
Year ended 31 August 2022 ( )
P1(1) YOY% P2(1) YOY% P3(1) YOY% P4(1) YOY% 2021/22 YOY%
£m
UK total sales 645.2 13% 250.3 (2%) 431.8 4% 435.5 6% 1,762.8 7%
EU total sales 390.2 (3%) 187.2 (3%) 294.0 (5%) 298.6 6% 1,170.0 (1%)
US total sales 172.6 7% 80.1 13% 141.9 21% 136.8 18% 531.4 14%
ROW total sales(3) 142.0 59.7 96.4(4) (7%) 97.4 (3%) 395.5
Total sales(2) 1,350.0 577.3 964.1(4) 2% 968.3 7% 3,859.7
Total sales growth by period at constant currency, excluding Russia
Year ending 31 August 2023
£m P1(1) P2 (1) P3 (1) P4 (1) 2022/23
YOY% YOY% YOY% YOY% YOY%
UK total sales (8%) (15%) (14%) (12%)
EU total sales 6% (12%) (7%) (2%)
US total sales (2%) (20%) (20%) (12%)
ROW total sales (10%) (16%) (14%) (13%)
Total sales(2) (3%) (15%) (13%) (9%)
Year ended 31 August 2022
P1(1) P2 (1) P3 (1) P4 (1) 2021/22
£m YOY% YOY% YOY% YOY% YOY%
UK total sales 13% (2%) 4% 6% 7%
EU total sales 2% 1% (2%) 9% 2%
US total sales 11% 12% 15% 4% 10%
ROW total sales(3) (7%)(4) (4%)
Total sales(2) 2%(4) 6%
(1) Periods are as follows:
P1: four months to 31 December
P2: two months to 28/29 February
P3: three months to 31 May
P4: three months to 31 August
(2) Includes retail sales, wholesale and income from other services comprising
delivery receipt payments, marketing services and commission on
partner-fulfilled sales.
(3) Calculation of metrics, or movements in metrics, on an ex-Russia basis
involves the removal of Russia from H1 FY22 performance following the decision
to suspend trade in Russia on 2 March 2022.
(4) In the tables above RoW and Group total sales for P3 have been restated.
This restatement relates to the removal of the £19.3m gain on RUB hedges,
which was reported as revenue at P3 but subsequently reallocated to other
income at year-end 2022.
Appendix 4
Total adjusted(1) sales growth by period in sterling, excluding Russia
Year ending 31 August 2023
£m P1(2) YOY% P2(2) YOY% P3(2) YOY% P4(2) YOY% 2022/23 YTD YOY%
UK total sales 590.1 (9%) 211.8 (15%) 366.4 (15%) 1,168.3 (12%)
EU total sales 417.1 7% 169.2 (10%) 282.0 (4%) 868.3 -%
US total sales 198.1 15% 71.1 (11%) 120.5 (15%) 389.7 (1%)
ROW total sales 129.8 (9%) 51.3 (14%) 83.9 (13%) 265.0 (11%)
Total sales(3) 1,335.1 (1%) 503.4 (13%) 852.8 (12%) 2,691.3 (7%)
Year ended 31 August 2022 ( )
P1(2) YOY% P2(2) YOY% P3(2) YOY% P4(2) YOY% 2021/22 YOY%
£m
UK total sales 645.2 13% 250.3 (2%) 431.8 4% 435.5 6% 1,762.8 7%
EU total sales 390.2 (3%) 187.2 (3%) 294.0 (5%) 298.6 6% 1,170.0 (1%)
US total sales 172.6 7% 80.1 13% 141.9 21% 136.8 18% 531.4 14%
ROW total sales(4) 142.0 59.7 96.4(5) (7%) 97.4 (3%) 395.5
Total sales(3) 1,350.0 577.3 964.1(5) 2% 968.3 7% 3,859.7
Total adjusted(1) sales growth by period at constant currency, excluding
Russia
Year ending 31 August 2023
£m P1(2) P2 (2) P3 (2) P4 (2) 2022/23
YOY% YOY% YOY% YOY% YOY%
UK total sales (9%) (15%) (15%) (12%)
EU total sales 6% (12%) (8%) (3%)
US total sales (2%) (20%) (21%) (12%)
ROW total sales (10%) (16%) (14%) (13%)
Total sales(3) (4%) (15%) (14%) (9%)
Year ended 31 August 2022
P1(2) P2 (2) P3 (2) P4 (2) 2021/22
£m YOY% YOY% YOY% YOY% YOY%
UK total sales 13% (2%) 4% 6% 7%
EU total sales 2% 1% (2%) 9% 2%
US total sales 11% 12% 15% 4% 10%
ROW total sales(4) (7%)(5) (4%)
Total sales(3) 2%(5) 6%
( )
(1) Adjusted sales are reported sales excluding non-underlying items
(2) Periods are as follows:
P1: four months to 31 December
P2: two months to 28/29 February
P3: three months to 31 May
P4: three months to 31 August
(3) Includes retail sales, wholesale and income from other services comprising
delivery receipt payments, marketing services and commission on
partner-fulfilled sales.
(4) Calculation of metrics, or movements in metrics, on an ex-Russia basis
involves the removal of Russia from H1 FY22 performance following the decision
to suspend trade in Russia on 2 March 2022.
(5) In the tables above RoW and Group total sales for P3 have been restated.
This restatement relates to the removal of the £19.3m gain on RUB hedges,
which was reported as revenue at P3 but subsequently reallocated to other
income at year-end 2022.
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