09/06/2010 - ASOS reports 44% profits surge
A move by fashion conscious youngsters to buy clothes online has helped ASOS enjoy a 44% rise in profits.
As the UK high street continues to be riddled by consumer fears, the online fashion retailer also predicted better growth this year.
The trend towards shopping online for clothes was "bigger than the economic cycle", ASOS chief executive Nick Robertson said.
Profits soared to £20.3 million in the year to March, but ASOS, which has a target market of 16 to 34-year-olds, said results could have been stronger. The company sells clothes and accessories styled on those worn by celebrities.
Mr Robertson said the group was overly cautious with stock levels last year and added that a 58% hike in sales since the year-end confirmed the resilience of its customer base.
The group's annual profits marked another record for the group, although growth slowed sharply on the 93% surge seen the previous year.
ASOS - celebrating its tenth anniversary this month - said it "under-potentialised" by holding back stock levels ahead of a planned consumer spending slump that failed to materialise among its shoppers.
It has since resumed stocking and said sales were soaring in the first nine weeks of the new year, up 36% in the UK and 118% internationally.
"It is too early to assume that these trading levels represent a sustainable trend, however, we have entered the year with much more confidence," said Mr Robertson.
Copyright © Press Association 2010
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