Azernews.Az

By Bloomberg

Asos Plc, the U.K.’s largest online-only fashion retailer, reported second-quarter sales that beat analysts’ estimates as revenue growth in its home market accelerated, sending the shares to their highest in nine months.

Retail sale growth accelerated to 19 percent in the three months to Feb. 28 from 8 percent in the previous quarter, the London-based company said in a statement Thursday. That compared with the 15.5 percent median of estimates compiled by Bloomberg. Asos predicted full-year pretax profit in line with market expectations.

Asos, which sells Converse sneakers and Cheap Monday jeans to twenty-somethings, has introduced zonal pricing to improve performance abroad after currency movements hurt its business. U.K. retail revenue gained 30 percent in the quarter, while international retail sales rose 12 percent.

“Asos are back,” analysts at Exane BNP Paribas said in a note to investors. “With comparatives easing and momentum returning, we expect newsflow to get incrementally more positive from here.”

The shares rose as much as 14 percent to the highest level since last June. They traded up 12 percent at 3,688 pence as of 8:04 a.m. in London.

In addition to strong U.K. growth, there was “encouraging momentum” in international markets during the quarter following the roll out of zonal pricing and price investments, Chief Executive Officer Nick Robertson said in the statement.

U.K. rival Boohoo.com, which targets 14-35 year old consumers and was listed on the London stock exchange last year, said Wednesday that its sales for the two months to Feb. 28 rose 22 percent.