Asda sales rise as George fashion line outperforms

Asda sales rise as George fashion line outperforms

Value supermarket giant Asda continued to grow its total revenues, like-for-like sales and margins in Q1, with the improvements helped by a “particularly strong contribution” from its George at Asda fashion and lifestyle brand.

So much so, that the retailer said it had “outperformed the fashion and homewares markets during the quarter”.

George, the UK’s third-largest fashion retailer by sales volume is the market leader in kidswear. It grew its total clothing revenues by 3% to £293 million in the first quarter and by 3% on a like-for-like basis, “as customers responded positively to its investment in price, style and quality credentials”.

Top-performing categories included schoolwear, “where the durability and value of George’s market-leading range” helped to drive an 11% increase in sales in Q1.

The brand has also been relaunching its adult denim range, with an 8% rise in sales compared to the previous year.

Meanwhile, the collaboration with TV personality Billie Faiers across women’s, kids and babywear — as well  the relaunch of its trend-led sub-brand G21, supported by influencer Sophie Piper — in March “also proved popular with customers”, the retailer said without giving supporting numbers.

In homewares, sales rose 11.7% having been boosted by the launch of the brand’s new Stacey Solomon Spring/Summer collection with the debut of a new 127-piece range featuring products for the whole home and a separate 41-piece collection dedicated solely to children’s interiors.

Mohsin Issa, Asda’s co-owner, said: “George at Asda again outperformed the value market in fashion and homewares, and it is very encouraging to see our investment in the brand bearing fruit both online and in stores.”

CFO Michael Gleeson added: “It was pleasing to see our investment in further enhancing the quality of… George at Asda resonate so strongly with customers.”

Across the wider business, first-quarter total revenues, excluding fuel, increased 6.6% to £5.3 billion, with a 1.4% growth in like-for-like sales.

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