Asos reports surge in full-year profits

The online retailer was boosted by a strong international sales performance

The firm's overseas revenue rose 36 per cent (PA)

Online retailer Asos has reported a surge in full-year profits and upgraded its sales forecasts after it was boosted by a strong international performance.

The firm clocked a 33 per cent rise in revenues to £1.9bn in the year to 31 August, with pre-tax profits growing 145 per cent to £80m.

On a constant currency basis, sales rose 27 per cent and, stripping out exceptional items, pre-tax profits rose 26 per cent.

Overseas revenue rose 36 per cent to £1.17bn, while Asos described a 16 per cent rise in UK turnover to £698m as “solid”.

Chief executive Nick Beighton said: “It's been a great year for Asos, with continued growth in sales and profits.

“Our international performance was excellent as we reinvested foreign exchange tailwinds and benefited from our continually improving customer proposition.

“In a competitive UK market, we achieved strong full price performance whilst further increasing market share.”

As a net exporter, the collapse in the value of sterling since the Brexit vote has helped the group's international sales rocket and allowed it to plough more into price cuts.

Asos added that the new financial period has started well and, as a result, it has increased its full-year sales guidance to 25 per cent to 30 per cent.

To cater for demand, the online company has been expanding its presence and capacity, for example by ramping up its US offering through a new factory in the country.

Mr Beighton added: “The investments we are making will see us add 1,000 new heads and will lay the foundations for a circa 60 per cent increase in unit capacity and circa £4bn of net sales.”

PA

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