ASOS, the popular fashion e-commerce platform, has released its interim results for the first half of the year, showcasing impressive achievements despite the challenges posed by the ongoing pandemic. The company has reported record-breaking results and maintained its strong market position.

In the six-month period leading up to the end of February, ASOS saw a significant 24% increase in group revenues, reaching £1.976 billion. Retail sales also rose by the same percentage, totaling £1.92 million. Although the gross margin experienced a slight decline from 47% to 45%, this was mainly due to increased freight costs caused by Covid-19 disruptions, foreign exchange fluctuations, and a change in product mix resulting from lockdown restrictions.

However, this decline in gross margin did not hinder ASOS’ profits. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by an impressive 90% to £180.8 million, while reported pre-tax profit rose by a staggering 253% to £106.4 million. Adjusted pre-tax profit also saw significant growth, increasing by 275% to £112.9 million.

ASOS’ success during this period can be attributed to the growth of its customer base, with an additional 1.5 million active customers acquired over the six months, bringing the total customer base close to 25 million. This growth in new customers helped offset the decrease in sales resulting from fewer events and occasions for existing customers to shop.

Both the UK and international markets experienced strong sales performance. In the UK, sales grew by an impressive 39%, while the European Union, the US, and the rest of the world all saw sales growth of 18% and 16% respectively.

In addition to its fashion success, ASOS also witnessed significant growth in its beauty category, with its Face + Body division recording a remarkable 114% increase in sales. Activewear and casualwear also performed exceptionally well, with sales growth of 95% and 69% respectively.

A major milestone for ASOS during this period was the acquisition of several brands from Arcadia, including the iconic Topshop label. The integration of Topshop brands into ASOS’ platform has been progressing according to plan, with a successful customer relaunch on February 22nd that generated great early customer momentum. The newly acquired brands have experienced a significant increase in website traffic, with a 226% boost on the launch day alone, resulting in strong sales momentum.

ASOS’ existing brands have also contributed to its overall growth. ASOS Design achieved 24% growth year-on-year, while ASOS 4505, the company’s activewear brand, recorded a 68% increase in sales. The success of these brands highlights ASOS’ agility in adapting to changing consumer preferences.

ASOS’ venture brands, Collusion and Reclaimed Vintage, have also fared well during this period, with Collusion experiencing a remarkable 93% growth and Reclaimed Vintage seeing a stellar performance with 92% growth and an expanded product mix. ASOS also introduced a new offering called As You, which has been well received by customers and has sold over 200,000 units since its launch.

Aside from expanding its brand portfolio, ASOS has focused on improving its logistics capabilities. The company introduced over 100 new delivery enhancements and expanded its Click & Collect offering to 166,000 locations worldwide. These improvements have strengthened the ASOS platform, providing customers with more choices and greater product availability.

Looking ahead, ASOS remains optimistic about its future prospects and does not anticipate a decline in sales once physical shops reopen. The company believes it is well-positioned to meet the demand for event-led products when normalcy resumes. However, ASOS remains cautious about short-term consumer outlook due to uncertainties surrounding the economic prospects for consumers in their twenties, the timing of global restrictions being lifted, and the potential for further Covid-19 outbreaks.

Overall, ASOS’ stellar performance in the first half of the year illustrates its resilience and ability to adapt to changing market conditions. With strong financial results, strategic acquisitions, and successful brand integrations, ASOS is well-positioned for continued growth and future success.

Useful links:
ASOS Official Website
ASOS Predicts Growth Spurt