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Asos sales rise 18% with profits up 1%

Asos has reported a group sales increase of 18% to £1.15bn for the year to August 31, with its pre-tax profit edging up by 1% to £47.5m compared with the previous year.

It received a net insurance reimbursement of £6.3m related to the fire that ravaged its Barnsley warehouse in 2014.

UK sales climbed 27% during the year to £473.9m, while international sales grew 11% to £574.8m. Gross margin increased by 20 basis points to 49.9%.

Asos ended the year with a cash position of £119.2m.

Asos

Asos

The etailer increased active customers by 13% to 9.9 million at the year-end, of which 3.9 million were in the UK and 6 million in international territories. Its nine local language websites attracted 89.8 million visits a month, up from 71.2 million.

Nick Beighton, who succeeded founder Nick Robertson as chief executive in September, said the profit before tax is “on track” with plans and said the results showed “encouraging progress”.

“We are attracting more customers with a continued expansion of our delivery proposition and mobile offerings,” he said. “Customer engagement has been exceptionally strong, with increases in average order frequency, basket size and value.”

During the year, Asos invested £50m in its warehouse capability and technology, and will invest a further £80m in the new financial year.

“Trading year to date has started well and preparations are at an advanced stage for peak season,” Beighton added. “We currently anticipate sales growth for the new financial year of circa 20%, gross margin investment of up to 50bps and a similar EBIT margin to the financial year just ended.

“We remain focused on achieving our next staging post of £2.5bn sales.”

@Tara_Hounslea

Readers' comments (2)

  • 2016 will be their toughest year yet. Competitors and in store technology will dent the edge enjoyed in earlier years.

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  • Completely disagree with the above, this is one of the few on-line only retailers making money, they have invested heavily in systems over the last couple of years and are only just starting to see the benefit. They can flick a switch and discount for two hours then turn it off, retailers cannot react to this and really shouldn't even try to compete. The only edge that really matters at this level whether it be e-tail or retail is No. 1 the offer and number No. 2 the image that is marketed to promote it, they stock many high street multiple brands and in some cases actually sell more than the multiples do on there ownsites. Asos are up there with the best of them and with the quality of management , buying and design this is not about to change anytime soon.

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