Asos profit buoyed by strong sales

UK: Asos sees FY profit buoyed by strong sales

By just-style.com | 28 April 2008

Internet-based fashion retailer Asos expects to post full-year profit slightly ahead of market expectations after nearly doubling recent sales, and despite closure costs at its Buncefield warehouse.

The company moved warehouses in October, leading to a one-off charge of approximately GBP1.1m (US$2.19m).

Asos' sales for the 12 months to 31 March 2008 were up 90% to approximately GBP81m and sales for the four weeks to 27 April 2008 increased 80% year on year.

Nick Robertson, Asos chief executive, said: "I am delighted to report sales of approximately GBP81m for the year ended 31 March 2008, a 90% increase on the previous year.

"Consequently, we expect our profit before tax to be significantly ahead of market expectations, before accounting for a one off charge of approximately GBP1.1m relating to the closure of our old warehouse.

"After this charge, we expect our profit before tax to be slightly ahead of analysts' forecasts."

The company's new distribution centre is in the town of Hemel Hempstead, near the M1 motorway.

Its old plant at Buncefield had been severely damaged by an explosion in Hemel Hempstead in December 2005, but then repaired.

Robertson added: "Despite the uncertain economic conditions, I remain optimistic about the prospects for ASOS.

"We continue to benefit from the increasing popularity of online shopping and we have made considerable investments in management, infrastructure, product ranges and marketing to support and sustain future growth."

ASOS will announce its preliminary results for the year ended 31 March 2008 on Monday 30 June when it will provide a full overview and update on the business.

Last year, the company posted a 144% hike in full year pre-tax profit to GBP3.4m.

Sectors: Apparel, Retail

Companies: ASOS