ASOS PLC – Interim Results
ASOS plc the global online fashion destination releases Interim Results for the six months to 28 February 2019.
Summary financial results
|
£m1 |
Six months to |
Six months to |
Change |
CCY2Change |
|
Group revenues3 |
1,314.5 |
1,158.1 |
14% |
12% |
|
Retail sales |
1,281.3 |
1,131.3 |
13% |
11% |
|
UK retail sales |
481.5 |
414.5 |
16% |
16% |
|
International retail sales |
799.8 |
716.8 |
12% |
9% |
|
Gross profit |
639.9 |
569.4 |
12% |
|
|
Retail gross margin |
47.4% |
48.0% |
(60bps) |
|
|
Gross margin |
48.7% |
49.2% |
(50bps) |
|
|
Profit before tax |
4.0 |
29.9 |
(87%) |
|
|
Diluted earnings per share |
3.6p |
29.2p |
(88%) |
|
|
Net (debt)/cash |
(37.9) |
37.7 |
(201%) |
|
1All numbers subject to rounding throughout this document, 2Constant currency is calculated to take account of hedged rate movements on hedged sales and spot rate movements on unhedged sales, 3Includes retail sales, delivery receipts and third-party revenues
Results summary
- Total sales grew at +14%
- UK sales rose by +16%, and international sales by +12%
- ASOS Design +5%, now annualising c.£1 billion; 3rd party brand revenues +18%,
- Retail gross margin down 60bps
- PBT £4m, after c.£24m (H118: c.£11m) temporary transition costs
- Customer engagement: active customers4 +16%, average basket value -2%, order frequency5 +4%
- Total orders placed 34.4m, +15% year on year
- US Hub operations stabilised
- Net debt position of £37.9m, enhanced RCF facility of £220m
Guidance
- No change to FY19 reported sales, EBIT guidance; c.15% and c.2% EBIT margin respectively
- No change to FY19 capex c.£200m, guiding to c.£150m in FY20
- Year end net debt of c.£50m, returning to free cash flow positive in FY20
Nick Beighton, CEO, commented:
“We grew sales by 14% despite a more competitive market. ASOS is capable of a lot more. We have identified a number of things we can do better and are taking action accordingly. We are confident of an improved performance in the second half and are not changing our guidance for the year.
We are nearing the end of a major capex programme. Whilst this has inevitably involved significant disruption and transition costs, the global capability it now provides us gives us increased confidence in our ability to continue to capture market share whilst restoring profitability and accelerating free cash flow generation.
Global online fashion is a growing, £220bn+ market. We now have the tech platform, the infrastructure, a constant conversation with our growing customer base who love our own great product and the constantly evolving edit of brands we present to them. We believe that ultimately there will only be a handful of companies with truly global scale in this market. We are determined that ASOS will be one of them”
4 Defined as having shopped in the last twelve months as at 28 February, 5 Calculated as last twelve months’ total orders divided by active customers
Investor and analyst meeting:
There will be a meeting for analysts that will take place at 9.30am today, 10 April 2019, at Numis Securities, 10 Paternoster Row, London EC4M 7LT. Photo ID and security checks will be required so please ensure prompt arrival. A webcast of the meeting will be available both live and following the meeting at www.asosplc.com. Please register your attendance in advance with Tom Berger at Instinctif Partners on either 020 7457 2834 or tom.berger@instinctif.com.