• Q1 revenues up 8% to GBP252.2m
  • UK retail sales surge up 24% to GBP104.8m
  • International sales down 2% by GBP141.5m
Asos is to roll out a zonal pricing policy internationally

Asos is to roll out a zonal pricing policy internationally

UK online fashion retailer Asos posted an 8% boost to first quarter revenues, but saw international sales hit by the strong pound.

The company said UK retail sales had risen 24% in the three months to 30 November but, while US sales moved up 9% to GBP24m (US$37.6m), EU sales fell 1% and rest of the world sales were down 6%, both impacted by unfavourable exchange rates linked to the strong pound.

Meanwhile, gross margin was down around 170bps on the year, and the company endured a difficult September and October as the automation programme at its Barnsley base was completed.

“Our sales have since gathered momentum and we had our biggest ever trading week over cyber weekend in November,” said CEO Nick Robertson, before admitting that international trading conditions “remain challenging”.

The company is to roll out a zonal pricing policy internationally, along with further investment into international pricing, both designed to address international performance.

However, analyst Cantor Fitzgerald Europe said there would “continue to be questions over the robustness of the company’s model, particularly its development strategy overseas”.

And Conlumino’s senior fashion consultant, Anusha Couttigane, while acknowledging a “promising start” for the retailer, said the company was still “ironing out bugbears” which were impacting performance.