ASOS has met analysts' expectations with a one per cent increase in profits in its latest year and said the current period has started well, after it faced challenges in 2014.
The online fashion retailer, which says it targets image-conscious 20-somethings, made £47.5 million pre-tax profit in the year to 31 August compared with £46.9m in the preceding year.
With total sales increasing by 18 per cent annually, £175m, to £1.15bn, new chief executive Nick Beighton said the results showed encouraging progress. UK retail sales rose 27 per cent
“Customer engagement has been exceptionally strong, with increases in average order frequency, basket size and value. We now have 9.9m active customers, up 13 per cent,” noted Mr Beighton.
ASOS expects to increase sales by 20 per cent in the current year without cutting profit margins.
The statement points to an improvement in the fortunes of ASOS, which issued three profit warnings in 2014. The company cited the effects of disruption from significant investment in warehousing, the launch of its new business in China, the strengthening of the pound and a fire at its Barnsley warehouse.
Chief executive Nick Robertson stepped down last month from the company he founded 15 years ago, but remains a non-executive director.
ASOS, which stands for As Seen on Screen, has benefited from price cutting and investing in altering the rates charged in different overseas markets to reflect currency movements.
The firm highlighted the improvements made to its delivery proposition in key European countries reflecting investment in its German Eurohub operation.
Mr Beighton, formerly ASOS’s chief financial officer, said the firm will focus on its core markets of Britain, France, Germany and the United States.
He said the company remains in start up mode in China.
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