Asos has reported a £5.6m dip in pre-tax profits to £20.1m for the six months to February 28, as total sales soared 34% to £472.3m.
The online fashion giant blamed the 22% year-on-year profit decline on “accelerated investment” in its logistics, IT platform and Chinese launch during the period.
Asos chief executive Nick Robinson said £68m will be invested during 2014 to increase efficiency at its UK warehouse, expand the Asos facility in Ohio in the US, and build a new “Eurohub” in Berlin and a warehouse in Shanghai.
Robinson said the investment will “more than double sales” at the etailer.
He added: “This increased pace of investment has reduced our profitability in the period, but will deliver significantly increased capacity as well as efficiencies in the longer term. Asos is not and has never been about the short term; the scale of the global opportunity remains as exciting as ever and we are investing for the many opportunities ahead.”
During the period UK sales soared 32% to £182m, while international revenues increased 35% to £290.3m year on year.
The number of active customers at Asos increased 36% to 8.2 million shoppers during the six months.