Asos targeting £1bn sales on surging expansion of its international arm

The fashion business, one of the rising stars of the stock market since its launch in 2000, saw sales rise 58 per cent to 324 million for the year to March after it opened websites in the US, Germany and France. Underlying profits jumped by 41 per cent to 28.6m.

With the company now generating more sales overseas than in the UK, further websites are due to open, in Italy, Spain and Australia, over the next year.

The group, which does not have a high street presence and yesterday again ruled out opening any shops, targets 16-34 year olds with clothes and accessories styled on those worn by celebrities - or "as seen on screen".

Asos said: "We remain positive about the outlook for 2012 and (are] on track to deliver our ambitious plan of 1bn of sales by 2015."

The company said its UK business had also delivered a strong performance, with initiatives such as free delivery and returns helping sales to rise by 25 per cent to 184m despite a tough consumer backdrop in the UK.

It is about to open a 530,000sq ft warehouse in Barnsley - consolidating four existing distribution sites in Hemel Hempstead - in order to support its range of 50,000 branded and own-label products.

The previously-announced cost of switching to the warehouse pushed profits at a pre-tax level down by 23 per cent to 15.7m.

Other initiatives have included Fashion Finder - an internet shopping site that allows consumers to purchase goods from a number of high street and internet-only clothing retailers. The website offers online access to more than 50 other companies, such as Urban Outfitters, Reiss, Ted Baker and My-Wardrobe.com.

Analysts said the results were in line with expectations, but were divided over the outlook for the shares.

Investec analyst Katharine Wynne kept a "sell" rating and said a recent hammering for shares in rival SuperGroup, after it failed to cash in on warm April weather, highlighted the "fragility of valuations in these markets".

Yet she upgraded her forecast for underlying profits in Asos's current financial year to 40m from 35m.

But Nick Raynor, investment adviser at the Share Centre, maintained his "buy" recommendation on the stock.

He said: "Since we first recommended Asos as a 'buy' in June 2010, the share price has risen by 317.5 per cent from 696p to 2,210p and we feel there is more to come. It aims to reach sales of 1bn by 2015 and, if its international expansion continues at the rate we are seeing, this is certainly possible."