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Asos has designs on future revenue of £2.5bn

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An employee organises photographs of models at the ASOS headquarters in London

An employee organises photographs of models at the ASOS headquarters in London

An employee organises photographs of models at the ASOS headquarters in London

Asos, the online-only fashion retailer, has said it plans to more than triple revenue as increased spending on warehousing and distribution enables it to support an even bigger customer base.

Annual sales of £2.5bn (€1.8bn) are "the next staging post in our journey," chief executive Nick Robertson said yesterday, without giving a timeframe.

Revenue in the last fiscal year was £769m and analysts predict sales of £1.01bn for the 12 months ending in August, according to estimates compiled by Bloomberg.

Asos yesterday reported a 22pc drop in first-half pretax profit, weighed down by costs to support investment in expansion. The company, whose sales have grown almost 10-fold over five years, forewarned investors of the decline two weeks ago, causing its share price to slump.

"This is all very encouraging," analyst Andrew Wade at Numis Securities said.

Asos gained as much as 3pc in London trading. The stock has fallen 17pc since the company said on March 18 that spending to increase warehouse capacity and investment in a China startup would hurt profitability this year.

Pretax profit in the six months through February fell to £20.1m from £25.7m a year earlier. First-half sales rose 34pc to £481.m. Most of the company's revenue comes from its international division, where retail sales increased 29pc in the two months through February. UK retail sales gained 21pc.

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