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Is Australia's love affair with Asos at an end?

The online fashion etailer has posted a 14 per cent drop in annual profits for 2014, down to £46.9 million (AU$85.82 million).

While overall sales increased 27 per cent to £955.3 million (AU$1.7 billion), global sales were impacted by the fluctuating value of the British pound.

UK sales helped to lift the performance, increasing 35 per cent on the previous year.

Asos CEO Nick Robertson remained optimistic on the etailer's future growth profits, despite a slow down in international sales compared to previous years.   

"Despite all that happened this year, we still delivered 27 per cent growth in sales, with the UK a standout performance at 35 per cent growth.

"Our customer engagement was exceptionally strong, with highest ever average order frequency, conversion and average basket size, and we exited the year with 8.8 million active customers, an increase of 25 per cent over last year.

"We are in a period of major investment that comes at a short term cost, but the medium - term benefits will be significant.

"As a result, we’ve had to manage a number of factors including disruption from significan t investment in our warehousing, the launch of our new business in China, the strengthening of the pound and the fire at our Barnsley warehouse in June, all of which combined to reduce profits by 14 per cent.

"Asos has always been about the longer journey to a very big prize : to be the world’s leading fashion destination for 20 - somethings , and we are firmly focused on our next staging post of £2.5bn sales (AU$4.6 billion)."

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