* Sales growth to be maintained in current year
* Company expects resilient UK clothing market
* Shares fall 7.5 percent after hitting 2-1/2 year highs
(Adds CEO comment, analyst comment, share price)
By Sarah Young
LONDON, Oct 18 ASOS, the British online
fashion retailer, said fast-changing product ranges and an
expanding international customer base would help it to maintain
sales growth and defy tough conditions in the UK clothing
Britain's more established clothing retailers including Next
and Marks & Spencer are struggling to grow
sales, with data from market researcher Kantar Worldpanel
showing the British fashion market witnessed its steepest
decline since 2009.
ASOS, however, forecast sales growth of up to 25 percent for
the 12 months to August 2017, building on the 26 percent jump it
reported on Tuesday for 2015-16.
"I'm expecting the major growth to come from international
but I'm not expecting UK to fall away substantially," Chief
Executive Nick Beighton told reporters on a call.
Shares in ASOS, founded in 2000 for fashion-conscious
twentysomethings, traded down 7.5 percent to 4,925 pence, having
been on a strong run going into the results -- they hit their
highest level for two and half years on Monday.
More than half of the online retailer's sales come from
international markets, giving it an advantage over UK-focused
shops given the devaluation of the pound since Britain voted to
leave the European Union on June 23.
But despite concerns over consumer confidence due to
economic uncertainty since the vote, the CEO said he expected
British consumers to keep buying.
"I think we'll see another strong performance from the UK,"
ASOS's rapid range changes, it adds over 4,000 new styles a
week to its website, and its strong social media presence,
will help it continue to grow, said Beighton.
ASOS has faced criticism from unions and media over working
conditions at its main warehouse in northern England, but the
retailer called the commentary inaccurate and misleading in its
ASOS posted underlying pretax profit of 63.7 million pounds
for the year to August 31, ahead of analysts' average forecast
of 62 million, and a 37 percent jump on the previous year.
Profit was boosted by the weakening of sterling versus the
U.S. dollar and euro in the wake of Britain's vote to leave the
(Reporting by Sarah Young; Editing by Keith Weir)