Asos Sales Accelerate As International Push Bears Fruit

Sales at online fashion phenomenon Asos have accelerated after booming summer sales and following a push into new markets including Russia.

Total retail sales in the past three months to August 31 increased 47 per cent to £207.9 million. That compared to a 40 per cent increase in the full-year to the same date.

In the quarter, UK retail sales increased by 49 per cent, Europe grew by 73 per cent, the US rose 59 per cent and the rest of the world by 26 per cent.

Nick Robertson, founder and chief executive described the performance as a 'strong finish to the financial year'. Asos said profit for the year would be 'marginally above expectations.'

Annual sales were boosted by a 57 per cent rise in US sales to £77.7 million and a 51 per cent increase in Europe to £177.7 million.

UK sales grew 34 per cent to £276 million. The rest of the world, which grew at a similar rate as the UK over the year, accounts for £222.4 million.

Asos said international sales growth continues to be driven by countries in which it has dedicated websites and in-country teams - which includes much of Europe. It said it was particularly strong in Europe driven by France, Italy and Spain. Outside Europe growth was driven by the US and Russia following the launch of its dedicated Russian website earlier this year.

It plans to launch a Chinese website next month.

Sales in the quarter outside the UK accounted for 64 per cent of group revenue. That compares to 65 per cent in the same period last year reflecting the strong performance of the UK over summer.

Margins in the quarter increased 4.6 percentage points after last year's price investments in discounts annualised, it said.