Asos sales skyrocket as website puts Penneys range on trial
Asos, the UK's largest online-only fashion retailer, said sales exploded in the third quarter as it started selling clothes from Irish clothing company Penneys.
Asos enjoyed a 45pc gain in total retail sales to £193.6m (€228.3m), exceeding the previous quarter's 37pc growth.
UK sales rose 39pc in the three months to the end of May, Asos said yesterday. Sales rose 8pc in the same period last year. Growth at home has been trailing the international division as Asos has added businesses from the US to Australia and Germany. International sales now account for about two-thirds of the total.
"One has to admire the Asos team, a phenomenal model and first-rate execution," said David Reynolds, an analyst at Jefferies International.
"The company is well on the way to delivering on consensus expectations for 2013."
Asos shares rose as much as 4.5pc in London trading. The stock has risen 53pc this year after more than doubling in 2012.
Asos started selling a "small selection" of Primark's most fashion-led pieces this month, cementing the website's place as a fashion destination for a target audience of men and women in their twenties.
Primark is the name used by Dublin-based Penneys overseas. It is one of the UK's fastest-growing retail brands.
The addition of Primark is "just a trial", Asos chief executive Nick Robertson said yesterday. Asos has about 70 Primark products on its website, with plans for about twice that, he said.
The online retailer is outpacing the retail market with a focus on fast delivery, in-country websites and marketing teams, and regularly updated fashions. (Bloomberg)