Aggressive international expansion has ensured that profit before tax for online fashion retailer Asos.com is set to be at the top end of expectations, according to a trading update released today.
Retail sales for the three-month fourth quarter ending March 31st 2011 grew 70 per cent year-on-year, with the US sales increasing 222 per cent, EU sales up 77 per cent and rest-of-the-world sales jumping 367 per cent during the period.
Group revenues for the full year rose 53 per cent and in line with expectations the e-tailer managed to slightly improve its margins between April 2010 and March 2011.
Nick Robertson, CEO of Asos, commented: “I am pleased to report another successful quarter with retail sales accelerating +70 per cent, up from +59 per cent in our third quarter. Importantly our UK business remained strong +24 per cent, vs +23 per cent in the third quarter.
“With International becoming an increasingly significant part of our future, I was pleased to see our International sales mix exceed that of the UK for the first time, accounting for 52 per cent of our retail sales.”
Domestic sales for the UK-based retailer improved 24 per cent over the 12 months compared to last year but international trading was the most impressive part of the operation during the period, growing 144 per cent.
Further development of the business during the last three months includes the launching of a fully integrated Facebook store and the Asos Fashion Finder platform which allows customers to buy clothing items from a variety of retailers.
Robertson added: “Profit before tax, pre exceptional, for the full year to March 2011 is likely to be towards the top end of expectations.
“We have approached the new financial year with confidence and are excited about the prospects for both our UK and International businesses.”