ASOS shares jump as retailer reports rise in Christmas trading, driven by UK sales

ASOS reported a 15% rise in retail sales over Christmas, driven by UK demand.

The British online fashion retailer said British sales in the six weeks to 9 January jumped 27%.

Retail gross margin was down around 200 basis points on the prior year but lower prices helped to grow international sales by 5%.

"Trading over the last six weeks was in line with expectations at 15 percent, with growth accelerating over the first quarter as anticipated," Chief Executive Nick Robertson said.

"Guidance for the outcome for the year in terms of both sales and EBIT margin remains unchanged."

Broker Shore Capital said the growth in its domestic market will encourage investors following a tough 2014, which saw its share price plummet significantly.

"However optimism arising from its UK performance is dampened somewhat by relatively muted growth internationally," wrote analyst Clive Black. We note that the company continues to make progress with respect to zonal pricing, which will enable Asos to remain competitive on price across different regions and negate the impact of currency fluctuations which could impact their customer proposition.

"When we last spoke to the company they remarked how this will give them flexibility to utilise price investment to increase demand, initial response in Australia was positive."

Shares rose 5.77% to 2,567p at 09:56 on Tuesday.