Asos: GBP40.9 m pretax profit and international sales double

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nternational shoppers kneel to Asos: 69% of traffic is derived from outside the UK, up from 58% a year ago. Pretax profit was 40.9 million pounds, compared to analysts' average forecast of 40.3 million pounds. Group revenue rose 46% to 495 million

pounds.

"We remain positive in our outlook for 2012/13 as we continue our journey to becoming the world's number one online fashion destination," said Chief Executive Nick Robertson, who is targeting 1 billion pounds ($1.6 billion) of sales by 2015.

International retail sales more than doubled over the year, benefiting from the launch of country specific websites in Australia, Spain and Italy, while UK retail sales were up 7 percent. Gross margin improved 180 basis points. International sales now account for 59 %of total retail sales. As at March 2012, 69% of traffic is derived from outside the UK, up from 58% a year ago, pointed out the company.

Online retail giant reported on Thursday a pretax profit of 40.9 million pounds in the year to March 31.That compared with analysts' average forecast of 40.3 million pounds, seeing group revenue rose 46% to 495 million pounds. Retail sales growth slowed down in the fourth quarter to 34 % (-8% from Q3).

The market was anticipating pre-tax profits of £39.7m on sales of £495m. Earnings per share are predicted to rise to 37.01p from 27.3p last year, but there is still no sign of a dividend from this growth company.

Shares in the firm hit a 12-month high of 2,508 pence last June, fuelled by buoyant trading and bid speculation, but have fallen back sharply since as the overall market tumbled, directors sold shares and investors fretted about the impact of rising youth unemployment on UK growth, explained analysts consulted by Reuters.

The stock closed Wednesday at 1,546 pence, valuing the business at 1.19 billion pounds.

Jaana Jätyri, chief executive of fashion trend forecaster, Trendstop.com, comments on the e-tailer’s success:  "To be the number one global fashion destination is a bold assertion, but if anyone can pull it off, Asos can.”

"As an online retailer with a global client base and a focus on ever-changing trends, Asos is about as hedged as it could be in the current climate.  Asos is constantly evolving its business, from using digital fashion advertorial to introducing customer service differentiators such as free international shipping. It knows how to keep the customer's interest and that's why the customer keeps coming back. It's successful because it provides affordable luxury and the latest designer trends at a lower cost to label-obsessed consumers, “ concluded Jätyri.