Boosted by the weak pound and “excellent” international performance, fashion retailer Asos (LON:ASC) has reported record annual sales and profits.
The Aim-listed company reported a 145 percent jump in pre-tax profits to £80 million for the 12 months till August 31. This is compared to results the year before, which stood at £32.7 million.
The online retailer handled competition from fashion retailer Boohoo (LON:BOO) by cutting prices and increasing discounted products.
“It’s been a great year for Asos, with continued growth in sales and profits. Our international performance was excellent, as we reinvested FX tailwinds and benefitted from our continually improving customer proposition,” said Nick Beighton, Asos chief executive.
“In a competitive UK market, we achieved strong full price performance whilst further increasing market share,” he added.
The group have upped estimates for the coming financial year, with estimates now 25 to 30 percent, compared to its previous target of 20 percent.
This round of sales saw an increase of 16 percent within the UK but was considerably boosted by the weak pound. International sales surged by 47 percent.
The company’s reliance on exports meant that a weak pound allowed the retailer to cut prices, whilst still seeing a surge in profits. This is in contrast to many highstreet retailers who are suffering from rising property costs and higher import charges.
In reference to the triggering of Article 50, Beighton said: “We have a two-year window to accelerate our business… we’re going harder and faster,”
The online company had 135.7 million visits in August this year compared to the 117.5 million users in August 2016.
Asos has reported 15.4 million active customers. 5.2 million of these are within the UK whilst 10.2 million reside elsewhere.
George Salmon at Hargreaves Lansdown said: “Asos’s market cap now exceeds that of several FTSE 100 companies. “However, with plenty of untapped potential across Europe and the US, the king of the Aim market has plenty of gas left in the tank, and looks set to continue its impressive record of double-digit sales growth for years to come.”