Shares in ASOS (LON:ASC) surged 3.5 percent in early deals after the online fashion store released an upbeat trading update, reporting that sales jumped 69 percent in the first quarter.
The sharp rise in revenues was largely due to the retailer's exposure to international markets, which now account for the majority of its sales.
ASOS added that the outlook for 2012 remains positive and the business has so far performed in line with expectations.
“I am pleased to report a strong first quarter performance...our UK performance was good and our international performance was very strong,” said chief executive of ASOS Nick Robertson.
Sales in the thee months to end June, the first quarter of the company’s financial year, soared 69 percent compared to the same period last year to £104.2 million. ASOS sales were driven growth in the company’s international business, where revenues jumped 160 percent to £59,600.
The share of international sales in the group’s total sales has increased from 51 percent in the previous quarter to 56 percent.
Trading in the UK has also picked up as sales there climbed 15 percent to £44,617 during the quarter.
Retailers in the UK have been under pressure since the UK government imposed a series of austerity measures last year in order to cut budget spending.
The measures, which included an increase in value added tax (VAT), and rising inflation curbed retail sales by reducing customers’ disposable incomes.
Sector bellwether Marks & Spencer (LON:MKS) said yesterday that the outlook for the rest of the year remains cautious.
Shares in ASOS rose 83 pence (3.5 percent) to 2,433 pence in early deals in London on the back of the update. The retailer currently has a market cap of £1.8 billion.