ASOS RAISES FORECASTS AS PROFITS SOAR ON BACK OF STRONG INTERNATIONAL PERFORMANCE
Online retailer Asos has reported a surge in full-year profits and upgraded its sales forecasts after it was boosted by a strong international performance.
The firm clocked a 33% rise in revenues to £1.9 billion in the year to August 31, with pre-tax profits growing 145% to £80 million.
On a constant currency basis, sales rose 27% and, stripping out exceptional items, pre-tax profits rose 26%.
Overseas revenue rose 36% to £1.17 billion, while Asos described a 16% rise in UK turnover to £698 million as “solid”.
Chief executive Nick Beighton said: “It’s been a great year for Asos, with continued growth in sales and profits.
“Our international performance was excellent as we reinvested foreign exchange tailwinds and benefited from our continually improving customer proposition.
“In a competitive UK market, we achieved strong full price performance whilst further increasing market share.”
As a net exporter, the collapse in the value of sterling since the Brexit vote has helped the group’s international sales rocket and allowed it to plough more into price cuts.
Asos added that the new financial period has started well and, as a result, it has increased its full-year sales guidance to 25% to 30%.
To cater for demand, the online company has been expanding its presence and capacity, for example by ramping up its US offering through a new factory in the country.
Mr Beighton added: “The investments we are making will see us add 1,000 new heads and will lay the foundations for a circa 60% increase in unit capacity and circa £4 billion of net sales.”