Technology

Posted on October 18, 2016 by staff

Asos posts surge in profits after US growth

Technology

Asos has posted a large jump in sales and profits on the back of strong growth in the United States.

The online fashion retailer, which targets 16- to 30-year-olds with ‘fast fashion’, saw an increase in group revenues to £1.44 billion in the year to August 31.

In the same period, it reported a 26 per cent increase in sales while profit rose 37 per cent to £63.7 million.

Chief executive Nick Beighton said: “I’m pleased with progress in the business.

“The strength of these results reflects our unwavering focus on delivering great customer experience, supported by rigorous execution of our investments.

“We continue to target our growth opportunities, so we’re accelerating investment in both logistics and technology.

“The pace at Asos is continuing in the new financial year, which we are looking forward to with confidence.”

Beighton was recently forced to defend claims by Buzzfeed that workers in its Barnsley warehouse were mistreated and discouraged from drinking water or using the toilet.

Accused by Buzzfeed of his firm running the warehouse like an “employer from Victorian times”, he said to do so would not lead to a productive environment, adding: “In a large facility… not everything is going to be perfect all the time.”

Asos sells more than 85,000 branded and own-label products and is seeking to “more actively target the significant and growing sportswear market”.