ASOS FY profit soars

9th Jun 2010 07:11

Online clothes retailer ASOS reported a whopping 44% increase in full year pre-tax profit while revenue surged 35% as demand accelerated. "The widely predicted slowdown in consumer spending, specifically amongst the younger customer groups did not materialise and the Internet continued its strong growth as a retail channel," said chairman Lord Waheed Alli. ASOS, whose fashion is targeted to 16-34 year olds, said pre-tax profit increased to £20.3m for the year ended 31 March 2010 compared to £14.1m the same time a year earlier. Revenue increased to £223m from £165.4m. International sales rose 95% to £63m. In current trading group retail sales for the 9 weeks to 6 June 2010 rose 58% with the UK up 36% and international soaring 118%."We are more confident for the current year and it has started extremely positively. We believe the prospects for ASOS, both in the UK and globally, remain very strong," the group added.Gross margin fell to 41.8% from 43.3% after a rise in sourcing costs and an extra discount sale but ASOS saw a recovery in margins during the second half. The number of active customers rose 25% year on year to 1.6m at the end of April 2010.ASOS also announced that it is to spend £20m on a new distribution centre that will have an initial capacity of up to £600m of sales. The group has a debt-free balance sheet and increased net cash to £15.6m during the period.A dividend has not been recommended.