Asos profits soar by 93% year on year

Online fashion retailer Asos.com has seen its before tax profits shoot up by 93% year on year.

Online fashion retailer Asos.com has seen its before tax profits shoot up by 93% year on year.

The company posted its full-year results yesterday in which profits jumped from £7.3m to £14.1m. Sales grew by 104% to £165.4m.

The online retail market is outperforming the overall retail market, and Asos.com says it expects the number of people shopping online to grow further.

The company's success has been driven by a raft of technology investments. In March this year the website was overhauled, improving ease of navigation. The company has new warehouse and carrier management systems, enabling the company to offer better customer service.

Asos is present on most major social networking sites and has asked staff to actively engage with customers. And back office systems supporting buying and merchandising operations have also been improved, meaning the company can cope with more orders.

Chief executive Nick Robertson said: "During the next 12 months we plan to continue our investment in systems, focusing on merchandise management and stock planning, and will further develop our website systems in preparation for our international expansion."

The retailer's business is mostly UK-based but international sales have risen by 303% to £32.2m. The company says there is significant opportunity for further international expansion.

At the end of May the site had 1.2m active customers, defined as people who have bought within the last six months, up 68% on the year before.

The site attracts 5.4m visitors a month and is the second most visited apparel and accessories site in the UK.

Robertson said: "We continued our programme of investment throughout the year, delivering a number of product initiatives whilst building our team and infrastructure to support these superior levels of growth. The continued popularity of internet shopping provided a strong back-drop.

"The percentage of clothing bought online is expected to double in the next 3 to 4 years, from 5.7% at the end of 2008 to over 11% by 2013. At ASOS, we remain committed to winning the online fashion race."

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