Apr 4, 2017
Asos cuts its cloth for growth
Its half-year results suggest that this is getting even faster: at peak trading, the new Asos online platform handled 33 orders per second. Daily app downloads were up 28 per cent in the period, customers logged in eight times a month on average, and spent 80 minutes shopping. Sales growth has been fastest internationally - up 66 per cent in the US, and 48 per cent in the EU, including the currency benefits of a Brexit weakened pound. Last year's decision to exploit sterling weakness and offer lower prices overseas - where Asos derives three-fifths of its sales - has cut the retail gross margin by 40 basis points to 47 per cent. Even Asos admits that, while seeking all those international sales, its margin based on earnings before interest and tax has been flat or slightly falling since 2014, at around 4.5-4.4 per cent.
Related companies
Make a complaint about Asos by viewing their customer service contacts.
