ASOS to invest for growth as profits soar
10 June 2010 09:45
ASOS plans to invest £40 million to boost its warehouse capacity in a bid to become a £1 billion business within five years. The announcement accompanied the online fashion retailer's annual results, with pre-tax profits up by 44% to £20.3 million in the year to March 31st. This was in line with analysts' forecasts and up from £14.1 million the previous year.
Group revenues increased by 35% to £223 million and international sales rose by 95% to £63 million.
In current trading, sales in the nine weeks to June 6th rose by 58%, with sales in the UK up by 36% and international sales up by 118%.
The new warehouse will replace the existing operation in Hemel Hempstead and will initially have capacity for £600 million of annual sales and fully operational by 2011.
"We are more confident than at this time last year, with both UK and international sales accelerating well" said chief executive Nick Robertson.
Lord Waheed Ali, group chairman, added: "The widely predicted slowdown in customer spending, specifically amongst the younger customer groups, did not materialise and the internet continued its strong growth as a retail channel."
Retail news is updated every weekday and is provided courtesy of: 
