Asos sales storm ahead but profits fall
Asos has revealed its results for the year to 31st August. Sales had risen by 13 per cent to reach £2.73 billion, with UK sales up by 15 per cent, EU sales up by 12 per cent and sales in the USA up by nine per cent. A total of 72.3 million orders were processed during the year, however the business which had been investing heavily to improve its performance saw profits fall to £33.1 million and showed a net debt position of £90.5 million.
The business said that its new customer acquisition and traffic in the UK was disappointing in the early part of the year following poor trding over Black Friday when it said it looked uncompetitive. The second half fared better with stronger traffic and a rise in the number of active customers as it became more proactive with promotions.
"This financial year was a pivotal period for Asos, where we have invested significantly and enhanced our global platform capability to drive our future growth," commented Asos CEO Nick Beighton. "Regrettably this was more disruptive than originally anticipated. However, having indentified the root causes of our operational issues, we have made substantial progress over the last few months in resolving them."
The online fashion giant had encountered major problems with its new warehouses in Berlin and Atlanta and it had struggled to meet demand.
"Whillst there remains lots of work to be done to get the business back on track, we are now in a more positive position to start the new financial year," Beighton sald.