ASOS record massive profits

Karin Strohecker, Reuters

ASOS, which sells cheaper versions of garments worn by celebrities such as Paris Hilton and Mischa Barton on its Web site www.asos.com, said on Monday sales rose to £12.8 million (E18.64 million) in the year to end-March 31.

Profit before tax and goodwill amortisation rose 77% to £1.1 million.

In early morning shares in the company traded up nearly 6% at 61.5 pence after hitting a fresh seven week high at 63.5 pence. ASOS has outperformed its sector by 35% over the past 12 months.

Chief executive officer Nick Robertson said four new areas shoes, accessories, jewellery and beauty products had seen a successful launch over the last year.

Robertson forecast 2005/2006 turnover of £20 million and EBITDA (earnings before interest, taxes, depreciation and amortisation) of £2.25 million.

"There are still a lot of people who have not taken the plunge (into Internet shopping) yet and our current customers are getting more confident and buying more items," he said.

Robertson said Internet shoe sales had been a success, with footwear now accounting for 12% of turnover.

"People told us that no one would buy shoes over the Internet but they do," he said. "We are still in a rapid growth market and there is still plenty of room for us to go."

For the coming season he hopes to increase sales by focussing on Russian folklore styles, fake fur and lots of lace.