Online retail giant Asos is set to buck the fachion sector’s downturn trend and post another jump in sales in its interim results on Tuesday.
Although the retailer is expected to outperform its UK counterparts, much of its sales have come from overseas markets.
A 27 per cent rise in pre-tax profits to £27.1 million is forecast to be announced next week, with group sales nudging £1 billion.
The devaluation of the pound has benefited Asos, as strong sales in the US are bringing seeing it cash in on the strong dollar.
“Much of the growth the business is experiencing is coming from the international business, which overall we expect to see around 50 per cent increase in revenue,” Shore Capital analyst George Mensah said.
READ MORE: ASOS expects to see sales surge of 30%
“US sales, aided partly by a plus 20 per cent currency tailwind, will continue to grow comfortably ahead of the group average, with 60 per cent growth on the prior year’s interims according to our forecasts.
“The disruption of ecommerce appears to be making several store-based US apparel retailers redundant and Asos has positioned itself to be a beneficiary of the secular change in how the US consumer shops.
“UK sales are still growing ahead of the domestic apparel retail market and we expect this to have continued during the first half; we have an 18.2 per cent growth rate pencilled in.”
Late last year the retailer announced plans to recruit 1500 people to its headquarters in London over the next three years. This announcement comes amid continuing controversy over warehouse working conditions, which Asos state are “inaccurate and misleading”.
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