International expansion has helped online fashion retailer Asos.com keep up its momentum of rising sales, but results released today show that trading in the UK has fallen flat.
During the second quarter ending September 30th 2011, UK sales for the company grew just one per cent year-on-year whilst overall retail trading jumped 53 per cent.
Over the first half retail sales were up 60 per cent thanks to continued penetration of the US market resulting in a sales boom of 136 per cent in this region, and an even more impressive increase of 306 per cent across its rest of the world category.
Three new transactional websites opened during Q2, in Australia, Spain and Italy, and by the end of the period the e-tailer had 6.3 million registered users from 160 countries.
Nick Robertson, CEO of Asos, commented: “I am pleased to report a strong first half performance. Our retail sales grew 60 per cent over the comparable period, with our International business more than compensating for the economic challenges facing our UK customer base.
“During the period we launched three more country specific sites in Australia, Italy and Spain taking the total number of Asos sites to seven (including the UK).”
The drop in UK trading is quite dramatic, having posted a rise of 15 per cent for the region in Q1, but shows how even the most popular retailers are struggling in this domestic market at present.
Luckily for Asos, investment in its global operations, with international sales now representing 59 per cent of overall trade, means it is still on course to hit full-year profit targets.
With sales in the EU, its third segment of international trading, up 73 per cent in the half, overall revenues for the group jumped 56 per cent to £217.6 million for the six-month period.
Robertson added: “With costs and stock tightly managed and retail margin ahead of prior year, we are confident of achieving results in line with market expectations.”