Asos plc saw total sales increase of 22 percent to 3,910.5million pounds for the year ended August 31, 2021. According to the company, the growth was fueled by an exceptional performance in the UK, which grew at 36%, while internationally sales growth in the EU and US was 15% and 21%, respectively. This is due to the continued momentum in P4, which continues its wholesale contribution. RoW saw a 6 percent increase in sales year-on-year. Pre-tax profits increased 36 percent to 193.6million pounds.

Asos also announced several board changes. Asos announced that Nick Beighton would step down as CEO. Mat Dunn, chief operating officer, will assume the additional role of chief operational officer and manage the business day to day. Katy Mecklenburgh is currently the director of group finance. Jorgen Lindemann, a non-executive board member, will replace Adam Crozier as chair.

Mat Dunn, chief operational officer and CFO at Asos, commented on the company’s performance and outlook. He said that Asos had delivered another strong performance with continued growth of customer numbers driving further sales and profits. While our performance over the next 12 month is likely to be limited by global supply chain and cost pressures as well as demand volatility, we remain confident that we can capture the huge opportunities ahead. I am thrilled to take on the role as COO. I will be working tirelessly with all Asos-ers in order to implement our revised strategy.

Review of Asos’ financial performance

According to the company, Topshop, Topman and Miss Selfridge have been a major part of Asos’s brand offering since their launch. Sales have increased by three times as much since acquisition.

Since the integration and acquisition of Topshop brands, an estimated 61.7million pounds worth of incremental sales have been contributed by Topshop brands. The UK contributed more that 50% of total Topshop brand sales. Europe contributed 23 percent, and the US 16 percent.

The active customer base of the company grew by 3,000,000 to 26.4 Million, an increase of 13 percent over last year.

The gross margin fell by 200bps while the adjusted pre-tax profit rose by 36 percent, to 193.6million pounds. The adjusted PBT margin of 3.2 percent was achieved after excluding the Covid-19 estimated benefits from FY21 PBT and FY20 PBT. This represents a 20bps increase over the previous year and a 30 percent increase in PBT. Basic earnings per share rose 2 percent to 128.9p while diluted earnings per shares remained flat at 125.5p.

Highlights from Asos results in core geographies

The company saw a 36 percent increase in sales to 1,652,000,000 pounds in the UK. The company experienced a decrease in churn rates and strong growth in new customer acquisitions. It added 1.4 million customers in the same period. According to the company, P4 sales growth was 29 percent compared to P3’s performance of 37 percent. This was due to tougher comparatives and a weaker summer season, as well as a warmer start for autumn/winter and travel-related restrictions.

Retail sales in the US grew 18% and total sales 21% respectively. Wholesale sales contributions from Topshop brands supported total sales growth, which was launched in April 2021. Asos gained 0.3 million customers in this period. This represents a 9 percent increase of the active customer base and a 16 percent growth in visits. Topshop brands are still strong in the US market. The US now accounts for 16 percent of FY21 Topshop wholesale and retail revenues, according to the company.

Europe saw a 15 percent sales growth and a 13 percent increase in active customers. The impact of lower consumer demand on growth caused a slowdown in P4 to 4 per cent.

Rest of World growth was at 6 percent, with 3 percent growth in active clients. The company experienced an increase in churn and slower growth in new clients. Due to competition from local retailers i Australia, Asos’ market share has declined. Market growth in Russia has also been slow.

Leave a Reply

Your email address will not be published. Required fields are marked *