Asos profits surge as overseas sales boosted by weak pound
Online fashion retailer Asos has reported record annual sales and profits, boosted by the weak pound and a “strong international performance”.
Pre-tax profits jumped by 145% to £80m in the 12 months to 31 August, compared with £32.7m last year.
Retail sales rose by about a third to £1,88bn.
Asos, which targets people in their twenties, also said it had upgraded its outlook for sales growth in the current financial year.
It now expects sales to grow by 25-30%.
Asos said that UK sales rose by 16% in the past year while international sales shot up by 47% as they were helped by the weaker pound.
The retailer exports more than it imports and the drop in sterling since the UK’s Brexit referendum in June 2016 has boosted the company’s international sales and allowed it to cut prices.
It added that sales growth was “once again driven by strong product, proposition improvements and further price investments across major markets”.
The website attracted 135.7 million visits during August 2017 compared with 117.5 million in August last year.
By 31 August, Asos said it had 15.4 million active customers, with 5.2 million in the UK and 10.2 million elsewhere.
“It’s been a great year for Asos, with continued growth in sales and profits,” said chief executive Nick Beighton.
“Our international performance was excellent, as we reinvested foreign exchange tailwinds and benefitted from our continually improving customer proposition.”