Dress sense helps to drive ASOS' sales

Demand for floor-length maxi dresses has helped drive up UK sales by 25 per cent in recent weeks, fashion retailer ASOS said yesterday.

The dresses in pastel and flesh-coloured shades were among the items proving most popular with its 3.6 million registered users, the firm said.

ASOS, which targets 16-34 year-olds with clothes and accessories styled on those worn by celebrities, said overall sales in April were 56 per cent ahead of a year earlier.

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UK sales were up 25 per cent while international sales have more than doubled against the same month last year, ASOS said.

The recent sales performance outstrips a 35 per cent rise in the year to March 31 and ASOS – which stands for As Seen On Screen –expects "another year of strong growth both in the UK and internationally". ASOS is on track to launch new websites in the US, France and Germany this year in a further expansion of its fast-growing international arm.

The group currently has more than 35,000 clothing, accessory and beauty lines and introduces around 1,500 new products every week.

ASOS, which reported "very strong" demand for its spring and summer ranges, added that annual profits would be line with market

expectations of 20 m.

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The firm has been one of strongest retail performers of the recession and said internet shopping was continuing to grow in popularity against traditional high street outlets.

Numis analyst Andrew Wade said: "ASOS continues to benefit from structural trends and a clear international opportunity, and now seems to be managing costs more effectively than in the past.

"While there remains plenty to go for domestically, in our view, a repetition of the UK success in even one international territory leaves the shares looking very cheap."

ASOS was founded in 2000 and floated on the junior AIM market in 2001.

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