Investors

2016 in Review

If we’re to become the world’s no.1 fashion destination for 20-somethings, as we fully intend to, our products need to be at the forefront of fashion, the price needs to be right for the market and we have to make it as convenient as possible for people to shop with us.

Brian McBride

Chairman

DELIVERING VALUE

Our aim is to build an increasingly desirable, defendable and differentiated business model, with a customer experience to match. From fashion advice, stories and inspiration, to more than 85,000 products available to buy across any device, ASOS, with its unbeatable service, is a true home for young fashion lovers.

Our mission remains unchanged: to be the world’s no.1 fashion destination for 20-somethings. We have made great progress towards this over the past financial year against our four strategic pillars.

GREAT FASHION, GREAT Price

We are customer obsessed: we inspire 20-somethings around the world to look, feel and be their best. We are inclusive and believe fashion should be accessible to everyone, irrespective of their shape or size.

We offer a combination of ASOS own-label and a curated edit of brands, from familiar high street names to lesser known brands that are new to the market. In essence, we offer the latest trends, of the best quality, at the right price.

AWESOME ON Mobile

Our vision is to fundamentally change the way our customers live and shop for fashion on mobile. We do this through our mobile strategy:

  1. Customer engagement – delighting our customers, providing them with inspiration and exciting news about fashion;
  2. Technology innovation – staying ahead both of our customers’ expectations, and the curve in mobile;
  3. Shopping experience – delivering the most enjoyable and seamless shopping experience available on mobile.

Best-in-class service

Our customers have high expectations and we aim to offer a friction-free online shopping experience. We deliver this through an ever-expanding list of free, quick and reliable delivery options and hassle-free returns (free in most of our key territories), allowing customers the flexibility of trying on the latest fashion in the comfort of their own homes. Our Customer Service Team helps with any questions along the way.

ENGAGING CONTENT & EXPERIENCES

We understand our customers, what inspires them and what interests them. We reach them by producing great content and we know how to make our content matter to them. This elevates us from being a shop to being a fashion destination and the customer’s experience of our content turns a simple sale into a loyal customer, who returns to us more frequently. We make sure we are in the forefront of our customers’ minds so that when they buy fashion, they buy ASOS.

Financial & operational highlights

During the year to 31 August 2016 the Group delivered total revenue growth of 26%, comprising retail sales, delivery receipts and third-party revenue. Retail sales grew to £1,403.7m (2015: £1,112.2m), accelerating as the year progressed, driven by strong product, delivery proposition enhancements.

£173.3m Robust closing cash balance. 26% Revenue growth (UK revenue up 27%, international revenue up 25%). 57.0% International Retail sales up. 4.4% EBIT margin (2015: 4.0%).