ASOS looks to extend global reach

Sales growth in the UK slowed to 21 per cent in the second quarter of its financial year, from 32 per cent in the previous three months, but ASOS continues to set its sights on a global customer base as it puts the finishing touches to French and German sites due to launch by the end of October.

It opened a dedicated US website at the end of last month.

International revenues surged by 128 per cent to 26m in the quarter to September 30, meaning sales generated from overseas customers now account for more than a third of total group sales. Nick Robertson, chief executive of ASOS, said: "The UK is a tougher place to do business, but it's only 3 per cent of global internet traffic."

He also shrugged off cost pressures hammering many fashion rivals, following warnings of higher price tags from the likes of Next and Primark.

The high street is being hit by soaring cotton costs and rising wage inflation in the Far East, but ASOS said rapid growth in sales volumes was helping it negotiate better deals.

It also sources only around 20 per cent of stock from China.

Sales in America shot up by 293 per cent in the second quarter ahead of the website launch, despite little marketing or advertising activity.

European sales rose by 71 per cent overall in the first half, although growth slowed in the market since the recession struck.

The group said it believes international sales could overtake the UK as early as next year.

ASOS – which stands for As Seen on Screen – said customers were rushing to buy the latest trends, such as aviator jackets, capes and long socks.

The group targets fashion for 16-34 year-olds and attracts more than nine million unique visitors a month.