UK: Asos profits soar on international growth
- Full-year pre-tax profit increased 217%
- Retail revenue was up 37% to GBP552.8m
Online retailer Asos saw full-year profits soar on the back of international sales growth.
The company, which has moved its year end from 31 March to 31 August, said profit before tax increased 217% to reach GBP40m over the year. Revenue grew 37% to GBP552.8m.
Over the five months to 31 August, profit before tax increased 317% to GBP13.2m. Retail revenue was up 32% to GBP231m. UK retail sales grew 13% to GBP81.6m, as international sales increased 46% to GBP149.5m.
In the UK, the company said the performance was "encouraging" and " appears to have been positively impacted by our investment in pricing architecture".
The US was the fastest growing segment, with retail sales up 72%, which the company attributed to further localisation of the trading calendar and content, investment in digital marketing and social media. The rest of the world recorded a 57% increase in sales, with continued strong performances from Australia, Russia, Singapore and China.
Over the five months, Asos recorded a 6% decline in average basket size, down to GBP59.64, which it said was mainly driven by a 5% reduction in average selling price. This, the company said was a direct consequence of its investment in restructuring and refocusing its pricing architecture.
"During the period we improved our product offer in terms of range, quality and price, invested in our customer proposition, made progress in developing the ASOS platform and continued to drive efficiencies from the business to fuel our future growth. At the same time we have reached the milestone of 5 million active customers worldwide," said CEO Nick Robertson.
"We remain positive in our outlook for 2012/13 as we continue our journey to becoming the number one online fashion destination for twenty-somethings, globally. Our International roll out continues and our 1:5:5 ambitions for the group are unchanged."
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