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What has taken the gloss out of increased international sales for online giant Asos?

Asos reported a 15 per cent rise in sales to £240 million ($AU430.6 million) for the three months to August 31.

Asos was also the leading fashion destination for Australian consumers in July, taking out 5.39 per cent of market share (Experian Hitwise).

However, its results for the period were impacted by a fire that was deliberately lit at a central warehouse in Barnsley.

The incident forced the company to halt trade on its website and suspend orders for more than 48 hours.

Around 70 per cent of Asos stock is held at Barnsley, with around 20 per cent wiped out in the fire.

Retail sales grew 27 per cent to £955 million ($AU1.7 billion) for the year ended August 31, just short of its £1 billion target.

Sales in the UK increased by 35 per cent, while international sales jumped by 22 per cent.

Asos CEO Nick Robertson said the final three months showed some promising results.

"Our UK performance remained strong over the final quarter, with sales increasing 33 per cent.

"Our international business grew six per cent or 14 per cent in constant currency.

"However, due to the fire at our Barnsley distribution centre, we lost sales during the quarter of between £25 million ($AU44.85 million) and £30 million ($AU53.83 million) with a retail gross margin impact of c.200 basis points.

"After adjusting for insurance proceeds, we expect profit before tax for the year to be in line with market expectations.

"Engagement with our customers remains positive with a 25 per cent growth in active customers and increases in order frequency, conversion rate and average basket value.

"Sales for the year as a whole increased by 27 per cent."

Robertson said the etailer would be making significant investments in international pricing and proposition over the new financial year.

As reported in Ragtrader, Asos planned to reduce price points for the Australian market on a permanent basis.

"We remain focused on the long term opportunity for Asos, with £2.5 billion ($AU4.49 billion) of sales as our next staging post."

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