Sterling woes spur international sales growth at online fashion darling Asos

Asos is one of the biggest online fashion retailers. Picture: Contributed

The group said pre-tax profits jumped 14 per cent to £27.3 million in the six months to the end of February, while overall revenues increased 37 per cent to £911.5m. The Brexit-hit pound helped international sales leap 54 per cent to £548.4m.

The firm said: “As a net exporter, sterling weakness has created a foreign exchange tailwind for the business which has enabled investment above previously planned levels into both price and proposition.”

As a result, Asos has again upgraded its sales guidance for the full year, pencilling in growth in the 30-35 per cent range, up from 25-30 per cent.

George Salmon, equity analyst at Hargreaves Lansdown, said: “Things have been pretty bleak for the UK’s high street retailers recently, which may be in part due to the sustained success of online giants like Asos.

“Asos’ market cap now exceeds that of several FTSE 100 companies. However, with plenty of untapped potential across Europe and the US, the king of the Alternative Investment Market has plenty of gas left in the tank, and looks set to continue its impressive record of double-digit sales growth for years to come.”

In the UK, where Asos flagged a “more promotional market”, retail sales grew by 18 per cent to £340.8m.

Chief executive Nick Beighton said: “These are a strong set of results, showing great progress across the business. International growth of 54 per cent has been excellent and with the ‘Rest of the World’ segment a stand-out performer.

“Given the current momentum we are seeing, Asos is making good progress towards its ultimate goal of becoming the world’s number one destination for fashion-loving 20-somethings.”

The group’s global business has been riding high – driven largely by the US – and it has reinvested the currency boost from the Brexit-bruised pound. It recently announced plans in take on hundreds of additional people over the next three years to work at its London HQ.

The firm said it expects its full-year profit before tax to be “broadly in line with market consensus”.

Salmon added: “The task now is to navigate through the process of building out its distribution networks in the US and Europe. Building the infrastructure to keep pace with its rapid growth has proven difficult in the past.”

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