Record pre-tax profits at ASOS
By StockMarketWire | Tue, 17th October 2017 - 07:11
Pre-tax profits at online fashion group ASOS rose by 145% to a record £80.0m in the year to the end of August.
Revenues of £1,923.6m were up by 33% on a year ago - 27% at constant currencies.
The group said retail sales growth of 34% to £1,876.5m (2016: £1,403.7m) was once again driven by strong product, proposition improvements and further price investments across major markets.
It aid that as previously noted, the continuing FX tailwind enabled reinvestment at a faster rate than initially planned.
Retail gross margin increased by 10bps to 48.6% (2016: 48.5%) as price investments in the US, Europe and some RoW territories were offset by a higher full price mix.
Delivery receipts grew 18% aided by higher next-day delivery usage and the expansion of Premier globally.
Chief executive Nick Beighton said: '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 beneftted from our continually improving customer proposition. In a competitive UK market, we achieved strong full price performance whilst further increasing market share.
'At the same time, we ramped up our investment in building the increasingly strong and differentiated ASOS proposition.
'Our new agile technology platform is allowing us to accelerate our pace of innovation with great benefits for our customers, including new payment methods and additional language sites to come.
'The investments we are making will see us add 1,000 new heads and will lay the foundations for a c.60% increase in unit capacity and c.£4 billion of net sales.
'The new financial year shows continuing momentum in the business.
'The potential for our company remains huge. We are confident we are positioning ASOS to be the world's number one destination for fashion loving twentysomethings.'
Koovs announces move into UK with capsule collection for Simply Be
Koovs plc (AIM: KOOV) announces a new partnership with one of the UK's leading online retail groups, N Brown Group plc ("N Brown"), to add the exclusive Koovs Private Label young fashion brand to N Brown's high profile Simply Be offer.
The partnership will see a capsule Koovs collection available from Simply Be in exclusive larger sizes from December 2017, followed by a more extensive range for Spring / Summer 2018, rolling out in March 2018.
This announcement, and the planned distribution in the UAE through Souq.com which is well advanced and is expected to go live within the next 3 weeks, further accelerates Koovs' international ambitions for its Private Label collection.
Mary Turner, CEO of Koovs says: "We are absolutely delighted to be working with N Brown and to bring the Koovs young fashion brand to the UK with Simply Be, a brand that celebrates and empowers all women whatever their size, through fun and exciting fashion."
Yep...Paul's review makes pretty tough reading too. I'm not sure if any major shareholders like HT Media are offloading again or if it's a wider sell off. I can fully understand why people don't like these numbers and the prospect of another placing, however, IMO if the sales continue to grow the key for me, as I alluded to previously, is where they can get the gross margins to.
In 2011 before BOO IPO'd their figures were T/o 24.4m GP12.5m 51.4%! OP177k NP after tax 139k. So margins were good but they were not massively profitable at the bottom line at that point.
Still early days for KOOV but sales and margins have to increase significantly and rapidly and cash burn reduced. Hopefully things like SOUQ.com will help.
Same successful model as BooHoo, ASOS, MissGuided etc. albeit a bit later in time, in the emerging financial markets. India offers huge potential. Nothing is ever certain but I believe this has big potential.
All good points but there is a big difference. That is that a lot of them are manufacturing in low cost economies and selling in developed economies. Koovs are still selling at a gross margin (not net margin) loss. We will only know if this model will work if they can produce a decent profit on goods sold in the Indian market.
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