British pure-play fashion retailer ASOS reported strong growth for its third fiscal period, the four months ended June 30, which for the sake of simplicity, we will refer to as 3Q17.
Total revenues climbed by 32%, or by 26% at constant exchange rates, to £676 million. This marked a slight slowdown from 1H17 revenue growth of 37%, or 31% at constant exchange rates.
Retail gross margin was flat year over year in 3Q17. In FY16, ASOS’s retail gross margin was 48.5%.
At constant exchange rates, ASOS reported the following regional performances:
The company reported the following nonfinancial metrics:
The company guided for FY17 sales growth to be at the upper end of the 30%–35% range, and for full-year profit before tax to be in line with market consensus, which it noted to be £79 million. FY17 capital expenditure is expected to be in the range of £150–170 million. Over the medium term, the company expects to grow sales by 20%–25% per year.
For FY17, analysts expect ASOS to grow total revenues by 34% to £1.9 billion, and to grow EBIT by 25%. Consensus expectations are for FY17 diluted EPS of 75.9 pence, versus 61.8 pence last year. These estimates were collated before the most recent results.