ASOS (AIM: ASC) 1Q17 Update: Strong Sales Prompts Upward Revision to FY17 Sales Guidance

Executive Summary

• British online fashion retailer ASOS reported £606 million in retail revenues in 1Q17, up 36% year over year. At constant currency, 1Q17 revenues increased 30% year over year.
• Strong sales momentum was driven by 18% growth in the UK and 41% growth in international retail sales, at constant currency.
• 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 also stated that FY17 capital expenditures will increase to £150-£170 million, up from the previous range of £120-£140 million.