ASOS share price (ASC) jumps as half-year sales soar

on Apr 1, 2015

Shares in ASOS Plc (LON:ASC), the AIM-listed online fashion retailer, have jumped nearly seven percent in London this morning, with the company signalling confidence on its full-year profits. As of 09:09 BST, ASOS’ share price had added 6.81 percent to stand at 3,876.00p. The shares have lost about a quarter of their value over the past year.

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ASOS said in a statement this morning that its retail sales had climbed 14 percent year-on-year in the six months to February 28, 2015, getting a boost from the company’s home market where retail sales came in 27 percent higher. The company saw a 13-percent surge in active customers to 9.3 million.
ASOS’ profit before tax, however, dropped to £18 million during the reported period, from £20.1 million a year ago. The online fashion retailer noted that the result included business interruption reimbursements of £6.3 million in respect of last year’s warehouse fire, and also noted that its gross margin had decreased on account of a launch of a zone pricing capability as well as investment in international prices.
“With our continued investment in our international price competitiveness gaining traction, momentum in the business is building,” ASOS chief executive Nick Robertson said in the statement. “This gives us confidence in the outlook for the second half and that full year profit and margin will be in line with expectations.”
Today’s statement follows ASOS’ trading update released last month when the company said that its retail sales had jumped by 19 percent year-on-year in the three months to the end of February. ASOS’ recent updates represent a turnaround following a torrid period for the company, marked by a string of profit warnings and a fire at the company’s Barnsley warehouse last year.


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