ASOS profits soar on overseas trade

British online fashion retailer ASOS said it would make year profit forecasts after it maintained a heady rate of sales growth in its fourth quarter, buoyed by strong trading in overseas markets such as the US and Australia.

ASOS, which targets young women looking to emulate the designer looks of celebrities like Alexa Chung and Kate Moss, said yesterday its retail sales rose 31% to £141m (€175m) in the three months to Aug 31. That was the same as the growth rate of the previous quarter and took the full year total to £538m a rise of 38%.

Fourth quarter UK sales rose 15% to £50m, while international sales increased 42% to £91m. ASOS said its retail gross margin improved by 70 basis points over the period even though it cut prices. Profit for the five months ended Aug 31 and pro forma full year were expected to be in line with expectations.