ASOS braced for Christmas battle
03 November 2011 10:27
Online fashion retailer ASOS today warned the run-up to Christmas would be challenging in the UK as retailers slash prices.
The company, which targets 16 to 34-year-olds with clothes based on outfits first worn by celebrities, said UK retail sales increased 8% to £88.6 million in the six months to September 30th, compared to a near three-fold increase in international sales to £122 million.
ASOS, which has websites in seven countries and ships to a further 190 nations from the UK, said challenging conditions would continue in the peak period as all retail channels roll out heavy discounting.
The group, which attracts nearly 14 million unique visitors a month and has 6.3 million registered users, reported a 66% increase in underlying pre-tax profits in the half-year of £11.7 million.
Nick Robertson, CEO, commented: "I am pleased to report a strong first-half performance with retail sales up 60% to £210.9m, an acceleration from last year where we were ahead by 50% in the first half. This reflects the increasing contribution of our International business which grew by 150% in the period, representing 58% of our sales (37% last year).
"During the half we launched three more country specific sites in Australia, Italy and Spain taking the total number to seven (including the UK).
"Our retail margin improved by 170bps on the prior year and we increased our profit before tax and exceptional items (relating to the warehouse move) by 66% to £11.7m.
"With our continued rapid and profitable international expansion, we remain confident of achieving full-year results in line with market expectations."
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