Irish sales boost fashion site ASOS growth
Online fashion retailer ASOS maintained its rapid rate of growth today after revealing a 41pc jump in annual profits to £28.6m (€32.4m).
The business, which was founded in 2000 and targets 16-34 year olds with clothes and accessories styled on those worn by celebrities, said overseas trade to markets including Ireland, accounted for 43pc of its £324m (€367m) in sales in the year to March 31.
It launched websites in the United States, Germany and France over the period and has plans for three more country specific sites this year as it targets £1bn of group sales by 2015.
In the UK, where the company faces intense competition, sales rose by 25pc to £184m but were outstripped by revenues generated overseas for the first time in the final quarter of the financial year.
ASOS is also supporting growth through a warehouse facility in Athlone which takes returns from the Irish market.
A company spokesperson said: "For the time being we will continue to use free delivery and returns in a planned and budgeted manner, but over time we aim to use it as part of the ongoing service proposition once the business' scale can support it."
The free shipping, which also applies to the Irish market, reduced the company's gross margin to 38.8pc from 41.8pc.