ASOS delivers expected profits
Online clothing retailer ASOS has delivered an expected 93% jump in full-year profit, although it admitted its margins have been hit by sales promotions over Christmas.
The fashion retailer revealed it boosted its marketing and production spend over the financial year to end of March by 62% reflecting the shift to in-house production of the ASOS magazine and increased numbers of brands and lines needing representation on the website.
The retailer says it is continuing its plans to “win the online fashion race”, which has seen it add Designer Brands at Asos, childrenswear line Little Asos, an own brand ranges Maternity and ASOS Black over the past year.
It says it plans to introduce its own childrenswear and own-label plus size range over the next year, despite planning to invest at more “conservative levels” to reflect slower rate of online retail sales growth.
The retailer also says it has “strengthened” its website and magazine advertising sales teams to boost revenues in this area, after seeing a 22% slump in advertising revenues to £968,000 over 2008-09.
“I remain positive about the outlook for ASOS. First quarter sales are growing at 52%, an exceptional performance, given the current economic climate,” says chief executive Nick Robertson.
