The fast fashion group continues to grow at top speed.
Companies: ASOS plc
Fashion e-commerce giant ASOS (LON: ASC) has announced its final results for FY17, cementing the Group's position as the go-to fashion site for fashion-conscious youngsters.
The AIM-listed company has reported some hefty growth numbers for the year with sales growing 34% to £1.9bn, including 47% growth in its international markets. Profit before tax increased a sizable 145% to £80m.
The London-based group is the most valuable company on the AIM market, followed by fellow online fashion retailer Boohoo.com.
Its retail Gross Margin also increased 10 bits despite "material price investment."
Management has upgraded its forecasts for the second time this year and now expects FY18 sales to be c. 25-30% higher than previous figures.
The stock is trading slightly down this morning, following the same pattern in April when forecasts were upgraded and the share price fell 7%. Shares were down almost 2% at the time of writing on Tuesday.
ASOS CEO Nick Beighton was obviously chuffed, commenting:
"It's been a great year for ASOS, with continued growth in sales and profits. Our international performance was excellent, as we reinvested FX tailwinds and benefitted from our continually improving customer proposition. In a competitive UK market, we achieved strong full price performance whilst further increasing market share.
The report went on to say the Group's capex spend in FY18 will be in the range of £200-£220m.
Once a platform focused solely on fashion, the ASOS website now covers men's and women's fashion for customers of all shapes and sizes, as well as selling activewear, face and body products, golf and football wear, and plans to launch into surf and snow products in FY18.
Currently, ASOS is valued at £4.76bn and trades at a whopping PE ratio of 59x versus the industry median of 14x. Consensus forecasts the reported Revenue of £1.9bn in FY17 to grow to c. £2.5bn in FY18.