Online Retail Giant Asos Sees Growth Despite Market Struggles
- 13% increase in total sales for Asos
- Total orders increased by 15% to 17.3m year-on-year
- Retail gross margin increased by 40 bps
- Sales growth of 14% in the UK
- European sales up 12%, with France and Germany remaining challenging
- CEO Nick Beighton plans to increase investment in price and marketing in second half, particularly in France and Germany
Online retailer Asos has reported a 13% increase in total sales for the three months ending 28 February 2019. Total orders placed during the period increased by 15% to 17.3m year-on-year, and retail gross margin increased by 40 bps. The company continued to outperform in the UK with a 14% sales growth. However, sales in Europe grew by 12%, with France and Germany, its two largest markets, remaining challenging. CEO Nick Beighton stated that they will be increasing investment in price and marketing in the second half, particularly in France and Germany. Despite these challenges, Asos remains confident in meeting their full-year guidance.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Asos’ sales increase, total orders placed, retail gross margin, performance in different regions, and CEO’s statement without any digressions or personal opinions.
Noise Level: 3
Noise Justification: The article provides relevant information about Asos’s sales and market performance, with a focus on specific regions and future plans. It offers some insight into the company’s strategy but lacks in-depth analysis or exploration of broader trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: Asos’s stock price and other online retailers’ stocks may be impacted
Financial Rating Justification: The article discusses Asos’s financial performance, including sales growth, retail gross margin, and future investment plans, which can affect the company’s stock price and potentially impact other online retailers as well.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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