The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — Asos Plc, the U.K.'s biggest online-only fashion retailer, said it expects full-year sales will be at the higher end of its forecast range as price cuts abroad lure customers.
Asos expects revenue growth to be closer to the top end of 20 percent than to 15 percent, the London-based company said in a statement Tuesday. Retail sales advanced 20 percent in the four months through June, led by sales in its home market. That matched the median of 18 analyst estimates compiled by Bloomberg.
"We have increased investment in our people and our customer proposition," Chief Executive Officer Nick Robertson said in the statement. He said he expects earnings before interest and taxes to be about 4 percent of sales.
Asos, which sells Vivienne Westwood clothing and Vans shoes targeted at twenty-somethings, has introduced local pricing to better adjust to currency swings, as it needed to reduce prices in Australia, New Zealand and the euro zone this fiscal year given the strength of the pound. That strategy plus investments to speed up shipping contributed to a 10 percent drop in first- half pretax profit, Asos said in April.
ADVERTISEMENT
The company said its full-year gross margin will be in line with last year’s.
The retailer has changed how it reports interim trading, now commenting on the first four months of each half-year period rather than the first three months.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.
The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.
The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.