Business World

Saturday 20 April 2019

Asos hit by problems in the US as sales increase 11pc

Total retail sales were up 11pc to £1.28bn (€1.5bn) in the six months to February 28.
Total retail sales were up 11pc to £1.28bn (€1.5bn) in the six months to February 28.
Ellie Donnelly

Ellie Donnelly

Online fashion retailer Asos suffered from a "significant" short-term despatch back log in the United States after demand exceeded expectations.

The delayed shipments of orders impacted momentum in the market.

The US market is now regaining momentum, Asos added.

Overall, and total retail sales were up 11pc to £1.28bn (€1.5bn) in the six months to February 28.

UK sales growth was the strongest, climbing 16pc to £481.5m (€563m), according to a trading update from the group.

Sales in Europe were up 12pc, although France and Germany, the group’s two largest markets, continue to be “challenging”. 

The total number of orders placed in the second quarter was 17.3 million, 15pc higher than this time last year.

Chief executive Nick Beighton said: "Our retail gross margin guidance for the year remains. We will be increasing investment in price and marketing in the second half, particularly in France and Germany.

"Given the actions we are taking together with an improving US performance, we believe the group will deliver stronger growth in the second half. Consequently we remain confident that we will meet guidance for the full year."

The group said its sales growth outlook for 2019 remains unchanged at around 15pc.

(Additional reporting PA)

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