Asos upbeat on outlook as international expansion continues
Online fashion retailer Asos has reported an 11% increase in pre-tax profit in the six months to end February and said it remains positive in its outlook for 2012/13.
Profit before tax and exceptional items was £25.7 million compared to £23.1 million in the same period last year. Retail sales rose 34% to £352.3 million with 26% growth in the UK. There was also a 39% increase in international sales which now account for 61% of total sales.
Group revenues were up 33% to £359.7 million as the company grew its number of active customers to 6 million from the 4.3 million recorded in the same period in the previous year.
Asos now operates in five key ‘strategic’ country including the UK, US, Australia, France and Germany. It has also launched dedicated websites in Italy and Spain and is now focusing its expansion into the Chinese and Russian markets.
Nick Robertson, chief executive, commented: “We have continued to invest in all aspects of the customer offer to maximise the growth opportunity; investing in product price and quality, enhanced delivery options, a broad range of marketing initiatives, focused local teams in international territories and continual improvement to our technology platforms, most notably mobile and international sites.
“Progress on our dedicated sites for both Russia and China remains on track. We are already seeing the benefits of this investment across all territories with increased customer awareness, increased shopper frequency, higher conversion rates, more items per basket and strong sales growth. At the same time we have reached the milestone of six million active customers worldwide.
He added: “Momentum is strong, and we remain positive in our outlook for 2012/13 as we continue our journey to becoming the number one online fashion destination for twenty-somethings, globally. Our International roll out continues and our £1 billion sales ambition for the Group is firmly in our sights.”
