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Asos First-Half Profit Falls Less Than Analysts Had Anticipated

Asos 2014 | Source: Asos
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  • Bloomberg

LONDON, United Kingdom — Asos Plc reported first-half profit that fell less than analysts expected as the U.K.'s largest online-only fashion retailer invested in logistics and technology as it seeks to expand its revenue.

Profit before tax decreased 22 percent to 20.1 million pounds ($33.4 million) in the six months through February, the London-based retailer said in a statement today. The average of four analyst estimates was 19.7 million pounds.

"This increased pace of investment has reduced our profitability in the period, but will deliver significantly increased capacity as well as efficiencies in the longer term," Chief Executive Officer Nick Robertson said in the statement. The company is investing its capacity to "support a truly global business with sales of 2.5 billion pounds as the next staging post on our journey."

Asos is adding warehouse capacity as the retailer is benefiting from growing demand for online fashion in its home market as well as abroad. Most of the company’s sales comes from its international division, where retail sales increased 29 percent in the second quarter. U.K. retail sales gained 21 percent.

After more than doubling in value in 2013, the shares have lost 16 percent this year as Asos has said increased investment will hurt profitability.

By Katarina Gustafsson; Editors: Celeste Perri

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