ASOS posts 22pc in profit as it splashes out on infrastructure
British online fashion retailer ASOS posted a 22pc fall in first half profit, reflecting its move to step-up the pace of infrastructure investment to meet future demand.
The firm, whose celebrity fans include United States First Lady Michelle Obama, said on Wednesday it made a pretax profit of £20.1m in the six months to Feb. 28, down from £25.7m in the same period last year.
The outcome was in line with guidance issued on March 18 when ASOS warned that accelerated investment in warehousing in the UK and Germany as well as start-up costs in China would hit annual profit.
ASOS said the extra costs would be disproportionately borne in the first half, resulting in a likely first half/second half pretax profit split of 30pc/70pc.
At the time it guided to a full-year pretax profit of about £65m.
"ASOS is not and has never been about the short-term; the scale of the global opportunity remains as exciting as ever," it said on Wednesday.