Asos sales still slow

 

asosTotal retail sales for British online fashion giant, Asos, jumped 34 per cent in the six months to the end of February, but the pureplay’s Rest of World (ROW) division, including Australia, has continued to slow.

“It has been an exceptionally busy period of activity at Asos, with continued growth and accelerated investment,” Nick Robertson, Asos CEO, said.

International retail sales, which make up around 65 per cent of total sales, rose by 35 per cent, however, its ROW sales division, which includes Australia, Russia, and China, saw a slow in growth, reporting an increase of only 14 per cent. Total sales in the UK, Asos’ biggest market, increased by 32 per cent.

“The group delivered strong sales and margin growth over the first six months of the year and we are now confident of achieving £1 billion of sales in FY 2013/14,” Robertson said.

“Retail sales for the two months to February were strong in all territories except Rest of World (ROW) where we experienced adverse currency movements, notably in Australia and Russia.”

Asos has continued to ramp up its investments in warehousing, both in the UK and Germany, and in IT, with Robertson stating the pureplay will  invest at least £68 million in capital expenditure in the current year (previous guidance £55 million).

Asos launched a dedicated Australian site in September 2011, which has since has grown to be Asos’ third largest market outside its home of the UK. It launched an Australian mobile site in September 2012, as well as a dedicated Australian office in Sydney.

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