November 18 2008

Asos increases sales and profits, set to expand overseas

The new role of international director has been created as Asos posts downturn-defying half year increases in sales and profits

Asos has posted significantly increased sales and profits for its latest half year of trading and, with a substantial positive cash balance at the bank, is planning a substantial international expansion. Key highlights of the interim results, just published, included:

• Sales are up 107% year on year to £65.7 million (and for the seven weeks to 16 November 2008 were 104% up year on year)
• Gross margin is running at 46%
• Profit before tax is up 68% year on year to £4.1 million 
• Asos has £8.9m cash in the bank
• Total number of unique visitors in October 2008 was up 93% to 4.5 million
• International sales are up 252% year on year to £11.4m

And, as of October 31st:

• The total number of product lines is up 238% year on year to 19,400
  
• The number of brands stocked is up 135% year on year to 700
  
• Number of active customers up 95% year on year to 947,000

In the coming six months, Asos says it will:

• launch ASOSKids
• launch a premium designer brands shop-in-shop
• continue to broaden the number of product lines offered
• bring further brands onto the site

In his chief executive's statement, Nick Robertson explained that "Despite adverse economic conditions, we have, with our strong balance sheet and operational cash flows, continued to invest in a number of customer focussed and strategic initiatives to support future growth.

"We are convinced that international expansion is a huge growth opportunity for Asos," he added. "To this end we will be appointing Jon Kamaluddin, currently finance director, to the role of international director."

"We view the coming months with cautious optimism," Robertson concluded.

by Sarah Clark (Web Editor)