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ASOS Sales Grow 27 Percent

The online fashion retailer said it would step up its investment in logistics and distribution, laying the foundation for £4 billion of net sales.
Asos | Source: Asos
By
  • Reuters

LONDON, United Kingdom — Online fashion retailer ASOS said it would step up its investment in logistics and distribution after reporting a 27 percent rise in first-half sales on Wednesday and forecasting similar growth in the second half.

The British company, which targets twenty-something shoppers, reported retail sales of £1.13 billion, and pretax profit of £29.9 million, just shy of average market forecasts.

Chief executive Nick Beighton said the company was trading strongly, with visits to its site exceeding 1 billion in the six months to end-February for the first time.

"Alongside our investment in our people and our technology, we are accelerating investment in our distribution and logistics, laying the foundation for £4 billion of net sales," he said.

The company said capital expenditure for the full year was now expected to be £230 to £250 million, an increase on the £200 to £220 million pounds it predicted in January.

It kept its forecast for around 25 to 30 percent reported sales growth for the year unchanged, along with its target of an operating profit margin of about 4 percent.

Analysts were expecting retail sales of £1.15 billion and pretax profit of £30.8 million for its first half, according to a consensus of 19 analysts.

By Paul Sandle; editor: Kate Holton.

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