ASOS (LON:ASC) reported a considerable improvement in sales during the past year and said its international expansion programme was firmly on track.
Group revenues in the year to 31 March 2011 soared 52 percent to £340 million as group sales jumped 58 percent to £324 million. The online fashion retailer’s gross profit rose 41 percent to £131.6 million, however, pre-tax profits dropped 23 percent to £15 million due to relocation costs of £12.9 million.
Earnings per share slipped 27 percent to 13.7 pence.
“I am pleased to report another successful year for ASOS...we remain positive in our outlook for 2012 and are excited by the opportunities for both our UK and international businesses,” said chief executive of ASOS Nick Robertson.
The group’s expansion programme remains on track with new country specific sites launched in the US, France and Germany with another three set to be launched in the coming financial year. International sales in 2010/11 soared 142 percent compared to the previous year, accounting for 43 percent of total sales, up from 28 percent a year ago.
ASOS is currently moving to a new warehouse in Barnsley, which will be fully operational this month.
The report was frowned upon by investors as shares in ASOS dipped 8 percent to 2,155 pence. In addition to the sharp decline in profits, the stock was hit by a negative outlook from home improvement retailer Kingfisher (LON:KGF), which said in today’s trading update that it expected the rest of the year to be a tough one for all retailers.