Asos on track for 1bn-pound sales target as FY profit rises

23rd Oct 2013 07:24

British online fashion retailer Asos said it was on track to hit a one billion pounds sales target as it announced higher annual profits.The group, which has cashed in on the growing trend for online clothes shopping in the UK and overseas, said it had another strong performance in the year to August 31st.Retail sales rose 40% to £754m and pre-tax profit before one-off items increased 23% to £54.7m.Asos, which targets shoppers in their 20s and 30s, reached a target of 7m active customers worldwide after investing in products, delivery options and marketing.It successfully launched a dedicated website in Russia in May 2013 and will soon launch a Chinese operation. It plans to increase capital investment to about £55m in each of the next two years.Chief Executive Nick Robertson said the company had started the new financial year well."Our £1bn 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," he said.The group's revenue rose 39% to £769.4m. UK retail sales lifted 34% to £276m but were outstripped by a 44% increase in international retail sales, which now make up 63% of total sales, to £477.8m.PW