On-line Vogue Retailer ASOS (LON: ASC) stories on its temp employees on Thursday, April 8, and the numbers will present whether or not progress has slowed because the first 4 months of the yr.
Within the 4 months to December 2020, UK gross sales elevated 36%. The group’s general gross sales grew 23%, with Europe, the US and the remainder of the world all rising by round 18%. France was a robust market as a result of the shops had been closed.
There was a change within the mixture of gross sales with extra enterprise in areas corresponding to face and physique and informal put on. This led to a drop within the gross margin.
The expansion fee just isn’t anticipated to be sustained for all the six month interval. The extent will probably be necessary to evaluate the results of the yr.
Peel Hunt expects interim revenue earlier than tax to be £ 90million on earnings of £ 1.93 billion. This doesn’t embody the combination prices for the High Store integration, which has been reported as £ 20million.
ASOS acquired the Topshop, Topman, Miss Selfridge and HIIT manufacturers, however not the related shops, for £ 265million. The manufacturers had generated annual revenues of over £ 1 billion and maybe over £ 150million of these gross sales had been on-line. ASOS plans to take a position £ 30million in further working capital on prime of restructuring prices.
Lively clients rose 5% within the first 4 months, though that fee is unlikely to carry up. Lively clients may enhance as completely different international locations emerge from lockdown, however others could return to lockdown and hamper progress.
Comparisons will initially be weaker within the second half of the yr. Buying and selling improved later up to now yr.
Because the UK strikes out of its borders, demand for outlet clothes and different summer time merchandise may enhance.
Turnover steering of over £ 3.9bn for the total yr may very well be overly cautious if first-half buying and selling is robust. A pre-tax revenue of £ 167million for the total yr is the consensus, however ASOS may very well be higher than that.