Monday 16 September 2019

Asos raises forecasts as profits soar

ASOS website
ASOS website

Ravender Sembhy

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 33pc rise in revenues to £1.9bn in the year to August 31, with pre-tax profits growing 145pc to £80m.

On a constant currency basis, sales rose 27pc and, stripping out exceptional items, pre-tax profits rose 26pc.

Overseas revenue rose 36pc to £1.17bn, while Asos described a 16pc rise in UK turnover to £698m 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 25pc to 30pc.

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 60pc increase in unit capacity and circa £4bn of net sales."

PA Media

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