Asos surges ahead with sales up 26%

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Sales rose 26 per cent to £2.53 billion for Asos in the financial year to August 31.

Profit before tax came in at £102 million, up from the £80 million achieved the year before.

This was ahead of analysts’ average forecast of £101 million for the year.

The online-only fashion retailer said group revenues rose to £2.42 billion from £1.92 billion a year before.

“This has been another year of substantial progress for Asos”, said chief executive Nick Beighton.

“We delivered 26 per cent sales growth and 28 per cent profit growth whilst investing heavily in the long term potential of the business. 

“Our reported profit increase was achieved despite bearing material transition costs due to our investment programme. 

“All our financial and customer key metrics have shown positive growth. Our guidance remains unchanged both for the current year and the medium term, despite our record levels of investment.”

Asos now expects sales to grow between 20 and 25 per cent for the 2018-2019 fiscal year.

The results come a few weeks after Asos shares were rocked by its largest investor offloading a stake in the business.

In September Bestseller United sold more than 2 million shares, reducing its holding by 2.4 per cent, sending shares down 5.2 per cent.

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