Asos adds to gloom for high street icon

By GRAEME EVANS
Published on 10/07/2012 21:02

Online retailer Asos put Marks & Spencer in the shade on Tuesday with bumper sales figures for the same sales period as its more established rival.

Shares in Asos, which targets twenty-somethings with clothes based on outfits first worn by celebrities, jumped 12.8 per cent at the close as analysts expressed surprise at the strength of its sales growth for the three months to 30 June.

Asos said its UK performance was “particularly encouraging” given the current trading climate, with sales up 8 per cent at more than £48 million.

Its international business grew sales by 49 per cent to £89m, helped by a strong performance in the United States. Overseas business now represents 65 per cent of its trading, compared with 57 per cent last year.

Simon Chinn, a consultant at retail research agency Conlumino, said the retailer had done well in the face of the eurozone difficulties.

He added: “Asos is outperforming as its highly desirable but competitively priced fashion and free delivery options appeal to consumers in an increasingly austere environment.”

The company’s website attracts 16.6 million unique visitors a month and had 8.7 million registered users at the end of June.

It sells more than 50,000 branded and own-label product lines, with around 1,500 new lines being introduced each week.

Overall sales for the group were up 31 per cent to £137m in the quarter, Asos added.