ASOS soars in tough retail sector

The fast-growing firm said on Wednesday retail sales increased 70 per cent to £93.4 million in the three months to March 31, its fiscal fourth quarter.

That compares with a rise of 59 per cent in its third quarter.

UK sales increased 24 percent to £44.9 million, while international sales soared 161 per cent to £48.4 million, helped by the introduction of United States, French and German websites in October 2010.

The firm reported a small increase in the full-year retail gross margin, in line with guidance.

ASOS targets internet-savvy 16 to 34-year-old women looking to emulate the designer looks of celebrities like Kate Moss, Sienna Miller and Alexa Chung, but at a fraction of the price, and enjoyed soaring sales throughout the recent recession.

While many retailers have struggled against tough macro headwinds, ASOS has prospered, benefiting from a young core customer base and the migration of spending from the high street to the Internet.

“We have approached the new financial year with confidence and are excited about the prospects for both our UK and international businesses,” said chief executive Nick Robertson.

Shares in ASOS have more than trebled over the last year, fuelled by buoyant trading and speculation the firm could attract a bid from companies as diverse as Danish shareholder and supplier Bestseller, US internet giant Amazon and retailers Marks & Spencer and Tesco.

The company plans to build a £40m state-of-the-art warehouse in Barnsley as part of its plans to quadruple the size of the business over the next five years.

The fast-growing firm has signed a lease on a 530,000 sq ft distribution centre in Barnsley, which will employ up to 1,000 workers including 360 permanent positions.