Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We use cookies to personalise your experience; learn more in our Privacy and Cookie Policy. You can opt out of some cookies by adjusting your browser settings; see the cookie policy for details. By using this site, you agree to our use of cookies.

Asos boss: ‘UK robust despite slowdown concerns’

Asos customers have not been deterred from shopping by the slowdown in the UK and global economy, said chief executive Nick Beighton, but the business will continue to invest in lower prices to continue its sales momentum.

Nick Beighton

Nick Beighton

Nick Beighton

Asos’s pre-tax profit increased by 18% to £21.2m for the six months to February 29 compared to the same period last year, while group revenues were up 21% to £667.3m. UK retail sales rose 25% to £289.5m and international retail sales were up 18% to £359.1m.

“We had a very strong performance with the business performing well across the globe, but the UK in particular had a robust performance”, said Beighton.

“I’m always concerned by anything that effects our customer but we haven’t seen a drop in our 20-something customer. However we are continuing to invest in our prices and to improve delivery and lower the cost of delivery.”

Beighton said the website’s bestselling products in the UK included “muscle-fit” T-shirts and shirts and longline sweatshirts. The firm’s bridal range, launched in March, is also performing well.

He said he was unconcerned by Amazon’s latest push into the fashion arena: “Amazon is a formidable force and its expansion into fashion will disrupt lots of retailers.

”Our 20-something demographic is in a slightly different segment as they are purely fashion focused [so won’t be affected as much]. Amazon will expand ecommerce expectations and that will benefit those who have a good offer [like us].”

Last week Asos announced it was discontinuing its operations in China at the cost of £10m and the loss of 60 jobs. Beighton said the money will be reinvested in its US, European and Australian offer.

“We withdrew from our China operations as we wanted to put capital into markets where we have opportunities waiting for us. We want to keep our UK customer experience hot and we’ll be expanding in the EU and building into the US and investing in Australia.

“In the US we are about to lower prices further and enhance our delivery service from six days to four, as well as building up our warehouse capability.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.