All profit data are after exceptional items.
Source: Company reports/FGRT
FY17 Results
UK Internet fashion retailer ASOS reported a 33% increase in revenues and an 89% increase in post-exceptional operating profit in the year ended August 31. Revenue was fractionally behind consensus expectations of £1,935 million, while operating profit was marginally ahead of consensus.
UK retail sales were up 16% for the year. At constant exchange rates, US retail sales were up 31%, EU retail sales rose 34% and rest-of-the-world retail sales rose 42%. The gross margin stood at 45.9% for the UK, 61.4% for the US, 47.3% for the EU and 52.7% for the rest of the world.
Outlook
Management provided the following guidance:
- It raised its FY18 reported sales growth guidance to 25%–30%.
- It expects an FY18 EBIT margin of 4%, stable versus FY17.
- FY18 capital expenditure will accelerate to £200–£220 million.
- Over the medium term, management expects sales growth of 20%–25% and a 4% EBIT margin.
For FY18, analysts expect ASOS to grow revenues by 25.2%, EBIT by 28.7% and GAAP EPS by 29.1%.
