AIM-listed fashion giant saw revenues rise 26%
Companies: ASOS Plc
Global fashion retailer and AIM's most famous constituent ASOS has released mixed final results for the year to 31 August 2016 this morning.
The company reports that group revenues increased 26% to £1.4bn, with solid increases in UK and international business. Gross profit also increased 26% to £722m, but PBT decreased to £32m (-31%), and earnings per share fell 34% to 29p.
The reduction in PBT and earnings was driven by a £20m legal settlement relating to trademark infringement disputes in Switzerland and Germany, and £10m related to discontinued operations in China.
The company's net cash position improved dramatically, as it ended the period with £173m (up from £119m).
ASOS, who sell 85,000 branded and own-label products to almost every country in the world, attracted 117.5m web visits during August 2016 (+30%) and had 12.4m active customers during the year.
Management said customer engagement had improved considerably, with active customers increasing 25%, visits +22%, average basket value +3%, and social media followers increasing 54%.
CEO Nick Beighton said:
"I'm pleased with progress in the business. The strength of these results reflects our unwavering focus on delivering great customer experience, supported by rigorous execution of our investments. We continue to target our growth opportunities, so we're accelerating investment in both logistics and technology. The pace at ASOS is continuing in the new financial year, which we are looking forward to with confidence."
ASOS opened down more than 3% this morning but is up 76% for the year. The company is trading on a P/E of 176.5, considerably higher than competitor boohoo on 104.
