Sterling slump in value fuels online retailer ASOS international sales boost
ASOS has bolstered its outlook after sterling’s slump since the Brexit vote helped trigger a significant surge in international sales.
The fashion retailer said it was pencilling in full-year sales to be 25% to 30% higher after international figures leapt 52% to £361.7 million in the four months to the end of December.
The firm said its global business was lifted after it reinvested the currency boost from the Brexit-hit pound and benefits from US import duty.
ASOS, which stands for As Seen on Screen, also drove home a strong performance in the UK, with sales climbing 18% to £244 million over the period, up from £206.2 million in 2015.
Chief executive Nick Beighton said the retailer had built on a strong performance over the festive period.
“Following record sales over cyber weekend and the Christmas trading period, I’m pleased to report a strong start to the year.
“A 50%-plus increase in international sales is a stand-out performance. UK sales growth at 18% was a strong performance in a more promotional market.
“With sales for the year now expected to be up by around 25% to 30%, we’re accelerating our infrastructure investment to handle that growth.
“ASOS remains well set to meet its longer-term ambitions as a result of the hard work and commitment of the team.”
The firm said capital expenditure for the financial year would come in between £150 million and £170 million.
ASOS announced plans in December to hire another 1,500 people over the next three years to work at its London headquarters.
It said it would take an additional 40,000 square feet to house the extra workers and will spend £40 million on renovating the space in Camden.
In recent months, the company has been dogged by claims of poor working conditions at its warehouse in Barnsley, South Yorkshire, but the firm has consistently said the allegations are ”inaccurate and misleading”.