Asos unveils 92% profit hike, but warns of tougher times ahead

Published on Monday 29 June 2009 21:44

ONLINE fashion retailer Asos has revealed that its rocketing growth rate has slowed slightly in the first quarter of this year, as it reported a 92 per cent hike in full-year profits.

The firm yesterday reported that sales in the 13 weeks to 26 June were 52 per cent ahead of the same period last year – compared with 80 per cent ahead at the end of April.

But profits for the 12 months to the end of March rose to 71.7 million, against 37.3m the year before. Sales more than doubled, rising 104 per cent to 165.4m.

Asos has expanded rapidly in the past year, adding maternity clothes, childrenswear and Asos Designer Brands ranges. It also increased the number of external brands it sells to 820 from around 600 the previous year.

In May, year-on-year growth in online clothing sales slowed to 8 per cent, the lowest in the nine-year history of the Interactive Media in Retail Group's index, Asos said.

Asos chief executive Nick Robertson warned: "Clearly we are facing much tougher comparables, and there is now some evidence to suggest that the rate of growth in online sales has begun to moderate."

International sales grew a hefty 303 per cent to 32.2m, while the overall number of active customers was up 68 per cent year on year to 1.2 million at the end of May.

The firm said it believes international expansion will be its largest growth area in the coming year, adding that it had increased the number of countries it ships to from 34 to 58.

Asos – which stands for As Seen On Screen – was launched as an online shop for customers to buy versions of products worn by TV and film stars.

It has since expanded to sell high street brands such as Oasis and G-Star, with the product mix currently around 50:50.