Sales figures forge ahead for online retailer ASOS

ASOS, which targets twenty-somethings with clothes based on outfits first worn by celebrities, surprised analysts with the strength of its sales growth for the three months to June 30.

ASOS said its UK performance was “particularly encouraging” with sales up eight per cent at more than £48m.

Its international business grew sales by 49 per cent to £89m, helped by a strong performance in the United States.

Overseas business now represents 65 per cent of its trading, compared with 57 per cent last year.

Simon Chinn, a consultant at retail research agency Conlumino, said the retailer had done well in the face of the euro zone difficulties.

He added: “ASOS is outperforming as its highly desirable but competitively priced fashion and free delivery options appeal to consumers in an increasingly austere environment.”

ASOS posted a 31 per cent rise in first-quarter retail sales. The figures reported yesterday were also buoyed by a strong performance in Australia.

The retailer said retail sales rose to £137m in the three months to June 30.

Chief executive Nick Robertson said: “Our UK performance was particularly encouraging given the current climate.”

UK consumer spending has been hit by fears of rising unemployment, lacklustre growth in wages and Government austerity measures.

However, the overall retail picture was brighter in June, as the Queen’s Jubilee holiday helped to boost British retail sales.

US sales surged 83 per cent, sales in the European Union rose 27 per cent and sales in the rest of the world, predominantly Australia, were up 61 per cent in the first quarter.

“We remain positive in our outlook, and continue to trade in line with expectations,” said Mr Robertson.

Analysts at Singer Capital Markets said in a note: “Sales in the first quarter are slightly ahead of consensus and in-line with our estimate of a 31 per cent increase.

“Within this UK growth has accelerated, which we believe is a direct result of the early reinvestment initiatives. With more to come this bodes well.

“Growth in the US was ahead of expectations and a new in-country team should be fully in place by the autumn.”

The analysts added that with gross margin currently tracking at last in line with full year guidance, ASOS is performing “extremely well” and they expected overall sales growth to accelerate as the year goes on.

Analyst Jean Roche at Panmure said: “ASOS offers investors exposure to a rare combination of exciting top line growth and careful margin expansion. We reiterate our ‘buy’ rating.”