Asos, the online fashion pureplay for twenty-somethings, has recorded a 27% increase in UK retail sales, boosting pre-tax profit by 1% to £47.5m.
International sales rose 11%, driven by the e-tailer’s new "zonal pricing" policy which enables it to alter the cost of goods in different regions so that prices are competitive and in line with the local market.
Total group sales grew 18% to £1.15bn in the year to August 2015 and Asos, which offers over 40,000 styles across branded and own-brand clothing, attracted 89.8m visits per month and had 9.9m active customers.
During the year, the company invested £50m in its warehouse capability and technology and has now set aside a further £80m for the new financial year.
The e-commerce giant struggled in 2014, issuing a string of profit warnings and suffering a fire at its distribute warehouse in Barnsley. Now Asos is beginning to gain traction.
In September former CFO Nick Beighton took over from CEO and founder Nick Robertson, who Retail Gazette understands stepped down to focus on charity work.
Beighton said he was “pleased” with the results, which “show encouraging progress.”
“We are attracting more customers with a continued expansion of our delivery proposition and mobile offerings,” he added. “Customer engagement has been exceptionally strong, with increases in average order frequency, basket size and value.
We remain focussed on achieving our next staging post of £2.5bn sales."