International expansion drives ASOS growth

2nd Jun 2011 07:19

ASOS delivered profits ahead of expectations in the year to 31 March as the internet fashion retailer's sales continued soaring.Pre-tax profits before exceptional items were up to £28.6m from £20.4m the previous year on revenues that soared to £339.7m from £223m. Sales in Britain were up by 25% to £184.1m and international sales soared 142% to £140m.Chief executive Nick Robertson said that a further three country specific sites are going to be built in the coming financial year following launches in the US, France and Germany."We have continued our investment programme to meet anticipated growth targets. Key to this is the ongoing transition to a new 530,000 sq ft warehouse in Barnsley, which will be fully operational by June 2011," he said."We remain positive in our outlook for 2012 and are excited by the opportunities for both our UK and international businesses." ASOS's gross margins were hit by increased investment in free shipping and free returns, the company said."Offering free delivery and returns remains one of our strategic aims over the medium term and a key differentiator of our customer offer from others in the marketplace," the company said.During the year ASOS, whose name stands for 'As seen on screen', increased the number of items offered to customers to 50,000 from 36,000. River Island and Barbour were among the new brands it added to its range.---RG