And a good morning to you, too, Asos! The British fast fashion e-tailer's share price shot up 20 percent on Thursday morning — its highest point in six months — after it announced some very heartening domestic and international sales growth in the three months ending Feb. 28.
As you may remember, higher pricing outside of the UK caused a decline in Asos's international sales a while back, which the company sought to remedy by investing in delivering better prices to that segment of its fanbase. And it really seems to be working. Over the past three months, international sales grew 12 percent, after sinking 2 percent the quarter before. Customer spending in Europe switched from a 1 percent decline to a 13 percent increase, and in the U.S., sales were up 24 percent compared to last quarter's 9 percent growth. Wahoo!
All together, international sales for the quarter came in at £164 million (about $245 million). Asos's performance in its home country, which accounts for a little more than 40 percent of sales, was also impressive, up 30 percent for the quarter. The company's total revenue hit £298 million (about $445 million).
Fixing zonal pricing is still a key priority for Asos, execs said on the company's earnings call Thursday, and it ranks above customer acquisition in importance when it comes to investments. As the team pointed out, "You always win when you invest back in the customer."
True enough. Asos's finalized half-year results come out on April 1. Until then, let's hope it keeps up the good work.