Investors took kindly to news today that ASOS (LON:ASC), UK online fashion store, had delivered a 35% increase in sales in the year to March to £223m, with pre-tax profits up 44% to £20.3m. Shares in the group rose by 4.6% to 662p on the results, which included a 20% increase in UK sales to £160m and a 95% rise in international sales to £63m.

Margins at ASOS, which sells over 36,000 branded and own label products, fell back to 41.8% from 43.3% overall but the group said the figure had shown signs of improvement during the second half. Elsewhere, the number of active customers was up 25% year on year to 1.6m at end April 2010. The company said that group retail sales for the nine weeks to June 6, 2010 were up 58% on the same period last year.

Nick Robertson, ASOS’s chief executive, said: “These are a strong set of results and the team have again delivered record sales and profits. We are more confident than at this time last year, with both UK and international sales accelerating well. We are keeping a very close eye on controlling our costs whilst at the same time encouraging the entrepreneurial and innovative spirit that drives all that we do. We are excited about the future and believe that online fashion will continue to outperform traditional retail channels. We are at the leading edge of our sector and see enormous potential to drive our business forward, both in the UK and internationally.”

Of note, Mr Robertson said the company was on course to open market-specific ASOS websites in the US, France and Germany later this year. He said the group was confident that the actions it had taken and the number of exciting new initiatives in the pipeline continued to set ASOS apart from any competition and enabled it to drive increasing traffic and sales. “There is no 'stand-out' competitor to ASOS - in terms of breadth of range and fashion edge - in either the UK or the main markets we are proposing to focus on,” he said. “Our short term strategy is clear: drive profitable growth in the UK as well as take the ASOS proposition to three key international markets by the end of 2010 as well as shipping to over 160 other countries.”

Aimed primarily…

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