Asos hit by US problems as sales increase 11pc



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Total retail sales rose 11 percent to 1.28 billion pounds (€ 1.5 billion) in the six months to February 28.
Total retail sales rose 11 percent to 1.28 billion pounds (€ 1.5 billion) in the six months to February 28.

Ellie Donnelly

The online fashion retailer Asos suffered a "significant" short-term return order in the United States after demand surpassed expectations.

Delayed shipments of orders impacted the market momentum.

The US market is now regaining momentum, Asos added.

Overall, retail sales rose 11 percent to 1.28 billion pounds (€ 1.5 billion) in the six months to February 28.

Sales growth in the UK was the strongest, up 16% to 481.5 million pounds ($ 563 million), according to a trade update of the group.

Sales in Europe rose 12%, although France and Germany, the group's two largest markets, remain "challenging".

The total number of orders placed in the second quarter was 17.3 million, 15% higher than in the same period of last year.

Chief executive Nick Beighton said: "Our gross margin margin for the year remains. We will be increasing the price and marketing investment in the second half, particularly in France and Germany.

"Given the actions we are taking together with the best performance in the US, we believe the group will show stronger growth in the second half of the year, and we remain confident that we will find ourselves with year-round guidance."

The group said its sales growth prospects for 2019 remain unchanged at around 15pc.

(Additional PA Report)

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