UPDATED: Online fashion specialist Asos has posted a rise in full-year profits, boosted by its growing international business which will be expanded this year. The retailer is also assessing how to launch in China.
Want to know more about ASOS?
Asos reported pre-tax profit, before exceptionals, ahead 41% to £28.6m on revenues 52% up to £339.7m.
International operations have become an increasing focus for Asos, which during the year to March 31 launched dedicated sites for the US, France and Germany. In the current year the retailer will introduce sites for Australia, Italy and Spain.
While UK retail sales rose 25% to £184m, international revenues soared 142% to £140m and now account for 43% of Asos’ total.
Asos chief executive Nick Robertson said that launching into China is now a question of “when, not if” but admitted much work still has to be done to identify the best approach because of the complexities and challenges involved.
“It’s not one country it’s about 10,” he said. Market entry would likely be in partnership with another company. “All the work is going on but people shouldn’t get too excited - it will be years before [any Chinese launch] gets to a meaningful level.”
The retailer is bringing a new warehouse on stream to support its growth, and booked a £12.9m exceptional charge to reflect the costs.
Robertson said: “We have continued our investment programme to meet anticipated growth targets.
“Key to this is the ongoing transition to a new 530,000 sq ft warehouse in Barnsley, which will be fully operational by June.”
He was “positive” about the outlook for the new financial year and excited about prospects both in the UK and overseas.