Asos eyes new markets as international sales beat UK

A Spanish site is planned and Australia is also being looked at, it is understood. Staff are already being sought for the Spanish business.

Asos chief executive Nick Robertson said the etailer would launch between three to five new sites in the current financial year but would not confirm where.

International sales, which rocketed 161% to £48.4m, overtaking UK sales of £44.9m, accounted for 52% of turnover in its fourth quarter. Robertson expects the international contribution to rise beyond 60% in the current year.

He said: “We’re at 52% now and it’s growing at 150%. We’re going to hit 60% pretty quickly.”

The etailer is also understood to be contemplating a move into China. International sales excluding the EU and US surged 367% in the three months to March 31.

UK sales rose 24%. Robertson said he expected a similar level of growth this financial year.

The etail giant’s full-year sales increased 58% year on year to £324.8m. Asos advised that pre-tax profit was likely to be at the top end of guidance, and broker Peel Hunt forecast a figure of £28.2m.

Overall gross margin fell slightly as Asos invested in free shipping and returns to propel its international sales, which Robertson said had been used as a marketing tool to acquire international customers.

Investec forecast gross profit margin is likely to come in at least 250 basis points lower than the previous year.

Asos anticipates that margins will increase next year as action is taken to overcome rising production costs.

Investec analyst Katherine Wynne said: “The combination of volume growth and a mix shift towards own-label is expected to mitigate the impact of sourcing cost inflation.”