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Profits jump at Asos

Asos has announced a 28% increase in profit before tax to £102m for the year to 31 August, despite investing heavily to support its future growth.

Group revenue was up 26% on 2017 to £2.4bn. Retail sales were also up 26% to £2.3bn. UK retail sales increased 23% to £861.3m, while international sales were up 27% to £1.5bn.

Retail gross margin rose by 130 basis points.

The number of active customers was up 19% on 2017, while the average basket size edged up 1% and order frequency was up 7%. The total number of orders placed increased by 27% year on year to 63.2 million.

The first phase of its US distribution centre is now operational and phase two of the Eurohub warehouse in Berlin is “progressing well”.

Asos said there was no change to its full year 2019 expectations, which include a 20-25% increase in sales and 4% improvement in EBIT margin.

Chief executive Nick Beighton said: “This has been another year of substantial progress for Asos. We delivered 26% sales growth and 28% profit growth whilst investing heavily in the long-term potential of the business. Our reported profit increase was achieved despite bearing material transition costs due to our investment programme. All our financial and customer key metrics have shown positive growth.

”Our guidance remains unchanged both for the current year and the medium term, despite our record levels of investment. Asos is moving fast and is as differentiated as ever. The potential for our business is huge and we remain focused on building Asos into the world’s number one destination for fashion loving twentysomethings”.

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