Asos reports 23% jump in profits
Online fashion retailer Asos has reported a 23% surge in its full-year pre-tax profits with sales rising both in the UK and overseas.
In the year to 31 August 2013, the retailer’s pre-tax profit was £54.7 million which was slightly ahead of analysts’ forecasts of £54 million.
Total group revenue rose by 39% to £769.4 million with total retail sales up 40% on the prior year. This was driven by strong growth in both the UK, where retail sales rose by 34%, and in international territories where there was a 44% increase in sales. International retail sales now account for 63% of the company’s total retail sales compared to 62% last year.
While the UK growth was ahead of expectations, the strongest growth was seen in the retailer’s “strategically important” international markets. The US was the fastest growing segment with a retail sales increase of 57% while in the EU retail sales rose by 51% driven by strong performances in France, Germany, Italy and Spain. Retail sales in the Rest of World segment grew by 35%.
Asos launched a dedicated website in Russia in May and will launch a website in China “imminently”. The retailer is also planning to step up its investment in people, technology, logistics and marketing, spending £55 million in each of the next two years.
Asos chief executive Nick Robertson said: “I am pleased to report another strong performance for Asos for the year ended 31 August 2013.
“During the year we continued to make progress towards our goal of being the world’s number one fashion destination for 20-somethings. We reached the milestone of 7 million active customers worldwide, following significant investment in our product offer, delivery options, customer experience and marketing. We also successfully launched our dedicated website in Russia during May 2013 and will soon launch our China operation.
“We have started the new financial year positively. Our £1 billion sales target is now firmly in our sights and we have stepped up our investment in people, technology, logistics and marketing to support the significant global potential of the Asos business.”
