1Q17 Update

British online fashion retailer ASOS reported £606 million in revenues in 1Q17, up 36% year over year.  At constant currency, revenues increased 30% year over year. UK retail sales grew 18% year over year to £244.0 million. At constant currency, Rest of Europe retail sales increased by 38% to £165.8 million, US sales increased by 42% to £82.7 million and Rest of World revenues expanded 44% to £113.2 million. ASOS active customers increased 25% year over year to 13.4 million. Average basket value (including VAT) increased 2%, and average order frequency increased 6% in 1Q17. Total orders shipped increased 35% year over year to 15.5 million.

Outlook

Following the strong 1Q17 performance, ASOS has increased FY17 revenue guidance and now expects growth to fall in the range of 25–30%, up from 20–25% previously. The company maintained profit before tax guidance. The company also stated that FY17 capital expenditures will increase to £150–170 million, up from the previous range of £120–140 million. FY17 revenue consensus estimates stand at £1,831 million, implying annual year-over-year growth of 25.5%. Consensus expects operating profit at £79.1 million, implying a year-over-year increase of 25.6%. The FY17 consensus EPS estimate is 76 pence, implying a year-over-year increase of 22.6%.