ASOS remains upbeat as sales record a 54pc increase

FAST-growing fashion retailer ASOS reported a 54 per cent rise in first-quarter sales yesterday, driven by strong demand for maxi-dresses and festival wear.

The shares rose six per cent last night, a rise of 53p to 949.5p, and chief executive Nick Robertson said the group is confident about future growth despite signs shoppers are becoming more cautious on worries over job losses.

"The young fashion consumer has proved remarkably resilient," he said. "She is on the internet more than she's ever been and ASOS is now an international play. That's why we're still very confident."

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The group, which emulates the designer looks of celebrities such as Kate Moss and Sienna Miller, is investing 40m in a state-of-the-art warehouse in Barnsley as part of its plans to quadruple the size of the business over the next five years.

ASOS has benefited from a young customer base with fewer financial commitments and from the migration of spending to the internet.

Retail sales rose 54 per cent to 61.7m in the three months to June 30. British sales rose 32 per cent, while international sales were up 111 per cent to account for 37 per cent of the total, led by demand from the US, France and Germany.

Mr Robertson sold a chunk of his shares to gain 15m, reducing his stake to 10.3 per cent.

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Mr Robertson co-founded ASOS in 2000 with just three staff and has built it into a business making more than 220m a year in sales. This is the first time Mr Robertson, a great-grandson of the founder of menswear retailer Austin Reed, had sold a meaningful number of shares. A spokesman said he remains absolutely committed to the business.

ASOS has thrived during the recession. It focuses on high fashion items aimed at 18 to 34-year-olds that replicate the designer clothes worn by singers, models and actresses.

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