Overseas growth set to boost Asos’ annual results

Asos full year

Asos is expected to reveal how increased global expansion has allowed it to record a spike in full year sales when it releases its annual results on Tuesday.

The online giant is expected to post a 35 per cent surge in sales to £1.9 billion, according to a consensus of City analysts.

In addition, the fashion retailer’s profit is predicted to grow 24 per cent to £79.3 million.

In its last quarterly update, Asos’ European and US markets experienced a sales rise of 41 and 38 per cent respectively as consumers took advantage of the weakened pound.

Asos has previously said the collapse in the value of sterling since the Brexit vote has helped its international sales rocket and allowed it to plough more into price cuts.

Analysts predict that this international sales growth will be the highlight of Asos’ annual report and the retailer is investing heavily on globalising the business to further accelerate this growth.

This includes re-investing in the positive foreign exchange tailwind into keeping prices down, as well as spending £30 million on a new factory in the US to ramp up its offering there.

The new fulfilment centre in Union City, near Atlanta, is slated to open next year.

Currently, 25 per cent of Asos’ US orders a processed at a small fulfilment centre – the remaining orders are dispatched from the UK.

Analysts also predict that Asos’ launch of its own-brand cosmetics range  AsosMake-Up will lead to revenue growth.

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