Asos Proves Fast Fashion Isn’t Cheap, Sees ‘Huge’ Growth Ahead

U.K. fast-fashion retailer Asos on Tuesday announced that sales this year through August rose 34% on a reported basis and 27% on a constant currency basis, with solid growth in its U.K. home base of 16% and a 36% increase internationally (or 47% on a constant currency basis) and said the potential for the company’s continued growth “remains huge.” Asos gross margin in the period was up 10 basis points over the prior year despite promotions, the company said in a press release. Asos reports continued strong customer engagement with active customers up 24%, average basket value up 2% and average order frequency up 5%, the company said. Total orders shipping in the period rose 30% over the same period last year to 49.6 million. The e-commerce apparel retailer said it expects a fiscal 2018 sales rise of between 25% to 30% and capital expenditures to reach £200 million to £220 million. The company enjoys a “strong cash position” of £160.3 million to support growth and enable business investment. Read more at Retail Dive.