Asos bucks the trend with sales outlook on the rise

The update bucks mounting woes among its high street rivals, with signs that sales slowed in the run-up to the EU referendum vote and have been hit by poor April and early summer weather.​

The group​​, which has its main warehouse in Barnsley,​​ ​said UK sales jumped 28 per cent to £203m in the four months to June 30​.

Asos, which stands for As Seen On Screen, said the robust third-quarter performance meant sales for the full year were now expected at the top end of its forecasts for between 20 per cent and 25 per cent growth.

Annual profits are set to be in line with expectations, it added, as its focus on lowering prices will weigh on profit margins.

The latest British Retail Consortium-KPMG survey showed that like-for-like sales fell by 0.5 per cent in June compared with a year ago, triggered by weaker clothes sales.

Marks & Spencer also last week revealed that its beleaguered clothing arm suffered its worst sales performance for more than a decade as it cut back on promotions amid a “weak market”.

Asos, which targets fashion-conscious twenty-somethings, said sales growth ramped up further across its overseas sites, which now account for more than half of group turnover.

But the group’s profit margin fell after it moved its main clearance sale into the third quarter, as well as continuing to cut prices.

Some analysts are predicting ASOS will capitalise on the recent plunging value of the pound, as 60 per cent of its customers and sales come from overseas.