Business

Asos revenues surge as same-day deliveries boost sales

Online fashion retailer ASOS saw a jump in revenues in the final months of 2017

ONLINE fashion retailer ASOS saw a jump in revenues in the final months of 2017, boosted by international sales and the draw of same-day deliveries at its UK business.

In its latest trading update, the company reported a 28 per cent rise in total group revenue to £808.4 million for the four months to December 31, helped by "exceptional performance" in the UK where retail sales climbed 23 per cent to £300.9 million, both at constant currencies.

The division benefited from speedier deliveries and the retailer's "try before you buy" offer, which lets customers order products to try at home and only pay for what they decide to keep, rather than having to seek a refund.

ASOS said its UK performance was "exceptional" despite a "challenging market".

International sales, meanwhile, rose 32 per cent over the period, with EU sales surging 34 per cent and its US operations booking a 28 per cent increase.

Sales across the remainder of its international business - including Australia and Russia - were up 32 per cent.

Chief executive Nick Beighton said: "I'm pleased to report a strong performance during the period including peak. We achieved an exceptional performance in the UK, whilst momentum in international sales continued.

"We acquired 2.6 million active customers year on year and saw encouraging movements across all key customer KPIs (key performance indicators).

"Velocity in our technology programmes continued, with a record number of releases. Our customer proposition was further enhanced in the UK with the launch of Try Before You Buy and ASOS Instant, our same-day delivery proposition."

The total number of orders placed in the period jumped 30 per cent year on year to 20.2 million, while the average frequency of orders - accounting for the total orders per customer over the past 12 months - was up 8 per cent.

The number of visits to its website also grew in December to 174 million, up from 139 million a year earlier.

ASOS confirmed its full-year guidance for 2018, but said capital expenditure was likely to be at the upper end of previous guidance of around £200 million to £220 million.

Mr Beighton said: "Following this strong start to the year, we remain confident in our full-year guidance and delivery of our planned investments in infrastructure to support our global ambitions."

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