UK: Asos share price soars on Q3 trading update
Asos saw its share price jump today (19 January) as it reported a rise in third-quarter revenue, driven by the online clothing retailer's international division.
The retailer said that consolidated retail sales increased 46% to GBP146.5m (US$226.4m) for the quarter ended 31 December. Its shares rose on the news, up 13.9% to 1,700p a share at 11:46 GMT today.
International sales grew 93% to GBP84.5m, with US sales rising 146% to GBP13m, EU sales increasing 33% to GBP32.4m and sales in the rest of the world up 179% to GBP38.9m. International sales accounted for some 58% of the total, while retail gross margins increased 300bps on the prior year period.
The retailer recorded 10% sales growth for the UK, up to GBP56.3m - a significant rise on the 1% sales growth it recorded in the UK during the second-quarter.
"With the business continuing to perform well through these challenging economic times, we remain confident about the outlook and expect our full year results to be in line with market expectations," said CEO Nick Robertson.
Singer Capital analyst Matthew McEachran described the trading update as "excellent", highlighting that UK growth has "bounced back" and that gross margin was up.
"This ought to help sentiment and means they will deliver FY expectations as hoped. The global opportunity remains enormous and, with the exception of slower growth in Europe, they appear to be tapping into this successfully," he said.
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