Asos aims to defy retail sector gloom with sales rise

Asos has grown business significantly in the US market
Asos has grown business significantly in the US market

Asos looks set to shrug off the gloomy outlook facing the British retail sector with another jump in sales when it reports interim results on Tuesday.

Sales at the fashion retailer are expected to outstrip the wider UK market, but the lion’s share of the boost will come from a powerful overseas performance.

The firm is expected to notch up a 27% rise in pre-tax profits to £27.1 million for the half year, with group sales hitting £901m for the period.

Asos, which stands for As Seen On Screen, said earlier in the year that annual sales were likely to be 25% and 30% higher after international takings leapt 52% to £361.7 million in the four months to the end of December.

The company’s global business has been riding high - driven largely by the US - after reinvesting a currency boost from the Brexit-hit pound.

Shore Capital analyst George Mensah said the firm also looked likely to benefit from a number of US retailers dropping out of the market place.

He said: “Much of the growth the business is experiencing is coming from the international business, which overall we expect to see around 50% increase in revenue.

“US sales, aided partly by a plus 20% currency tailwind, will continue to grow comfortably ahead of the group average, with 60% growth on the prior year’s interims according to our forecasts.”