ASOS reports 66% profit surge

published 3 November 2011

Online clothing firm ASOS posted a 66% rise in half year profit and enviable sales growth as strong overseas demand overshadowed a weaker UK performance.

The group, which sells fashion to 16-34 year olds, said profit before tax and exceptional items rose to £11.7m for the 6 months ended 30 September 2011 from £7m the year before. Revenue rose 56% to £217.3m. Gross margins increased 10 basis points.

Overall retail sales were up 60%. While UK retail sales rose 8% to £88.7m international retail sales jumped 150% to £122.2m.

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CEO Nick Robertson said he was pleased with the group's first half performance.

"During the half we launched three more country specific sites in Australia, Italy and Spain taking the total number to seven (including the UK)."

"With our continued rapid and profitable international expansion, we remain confident of achieving full year results in line with market expectations," he added.

ASOS however remains cautious about the UK outlook. "The UK remains challenging and as a result we are proceeding more cautiously particularly over the peak period where we anticipate continued high levels of discounting across all retail channels."