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UK' fashion clothing internet industry new model

ASOS PLC (ASC.L), the UK's largest fashion retailer, raised its full-year revenue forecast after a 36% revenue increase in the holiday season and said it would speed up infrastructure investments to support growth.

Market worries that higher capital spending will oppress profits, ASOS PLC (ASC.L) opened up 2.1% at 12 Thursday to 5,500 pence after a 52-week high, U-turn down by up to 2.7%.

ASOS PLC's total revenue increased to £ 621.3 million from £ 457.1 million in the first four months of the year through December 31, compared to a 30% increase under the constant exchange rate. Europe, the Americas and the rest of the world recorded a 38%, 42%, and 44% increase in constant exchange rates, with average international retail sales up 41% year-on-year to 361.7 million pounds, mainly due to the Group's price deflation Investment (price) and the US import tariff concessions, and now the international market has accounted for 58.2% of group revenue.

British domestic market in a strong promotional atmosphere also increased by 18.3% to 244 million pounds. Retail gross margin declined 30 basis points, the group pointed out that this is in line with expectations. ASOS PLC CEO Nick Beighton told analysts after the earnings conference call, even if the devaluation of sterling led to rising procurement costs, there is no plan for the British customers prices.

In the update, Nick Beighton said the site platform in the black Friday to network Monday weekend and Christmas period have recorded a record sales, and black Friday sales and visits are higher than Christmas, respectively, than the previous year Over the same period increased by 45% and 35%, reflecting the past three years, changes in consumer habits.

In the first quarter, the number of active users jumped 25% year-on-year, while customer unit price and purchase frequency increased 2% and 6% respectively. The total number of orders reached 1,550, up 35% year-on-year.

ASOS PLC as of August 31, 2017 annual sales growth rate is expected from the previous set of 20% -25% to 25% -30%, medium-term sales growth is expected to remain at 20% -25%. The annual capital expenditure budget also increased from £ 120m to £ 140m to £ 150m to £ l.7m and is expected to reach market expectations with an increase in investment for the full year. Pre-tax profit for the full year was only $ 87m GBP.

In terms of new investment, the group will build a new warehouse in the US with a capacity 10 times the current facility, although the group only accounted for less than 8% of the sales, but the previous fiscal year sales recorded a 2/3 increase. Nick Beighton stressed the importance of infrastructure to international business expansion and growth, for example, he has now Russia's standard delivery time has been reduced from a month to a week.

At the same time, ASOSPLC will also increase investment in the local market, the group announced in December the next five years will cost a total of 78 million pounds in the London headquarters to create 1,500 jobs, as well as new factories in the UK to increase its own brand of production capacity , The proportion of UK procurement from the current 4% to 9%.

ASOSPLC's rival, Boohoo.comPLC (BOO.L), has benefited from the effort to reduce some of the latest designs to domestic suppliers to shorten production cycles and to adjust supply based on market reaction. According to the data show that in the last holiday season, 55% of sales growth is far better than market expectations of 46%, also prompted the Group in the first half of the year 5 raised annual sales growth expectations.

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