ASOS profits continue to surge
ASOS sees a surge in sales as it seeks further international growth.
Online fashion retailer ASOS has once again beaten the doom and gloom of the retail industry by reporting an increase in gross profit of 34% for the six months to 30 September 2009.
In 2008 the leading online fashion store reported a gross profit of £30.2 million for the half-year to 30 September, but this year the figure has leaped to £40.4m. However, profit before tax has seen a steadier rise, with an increase of 9% to £4m.
International sales have seen the biggest rise, with growth in sales of a resounding 112%. ASOS’s Chief Executive, Nick Robertson, said the company has been focused on building its international operations and with the addition of an extra 56 countries, now has its offering in a total of 114. The market represents 25% of the company’s total sales.
UK shoppers may have been drawn to the site with the newly introduced option of free returns; however this has had a financial impact on the company, though ASOS said no more than was to be expected.
Mr Robertson, who founded ASOS, commented on the results: “A strong first half performance and a very encouraging start to the second half.
“UK sales continue to grow and international sales have accelerated. Fundamentally, the internet is the retail channel with the greatest potential and ASOS is ideally situated to exploit it.”
The company said despite its ongoing success it remains “cautiously optimistic” about the future.
