ASOS reports first half loss

UK-based internet retail and marketing services group ASOS has reported a loss before amortisation of goodwill and tax in the first half of £6,000, compared with the profit of £240,000 which it made in the same period last year. The Group realized a sales increase of 78 percent to £8.3 million. Sales for asos.com, the Group's main trading subsidiary, rose 86 percent to £8.1 million.

Capital expenditure for the period amounted to £686,000, with a further £400,000 set aside for the second half of the year. "We have invested in our management and logistical teams, doubled the size of our buying and merchandising team and bought ourselves sufficient logistical capacity to support continued high levels of growth," chief executive Nick Robertson said in a statement.

Last year the company added four new departments: jewellery, footwear, beauty and accessories. This year it created a team that is able to deliver 800 trendy new fashion lines each month, which is double last year's average. "I remain optimistic about the prospects for the business," added Robertson. "Strengthening our supplier terms and improving our gross margin will support the strategy of delivering 800 new lines per month."

ASOS attracted over 1.1 million visitors in October, making it the second most visited clothing an apparel site after Next. The company expects the number of visitors in November to rise to 1.4 million, signifying a 46 percent year on year increase. The company, aimed at the 18-34 age group, was established in June 2000.