Audio: Asos sales up but back-end investment impacts bottom line

Asos has reported retail sales of £536.4 million for the six months to 28 February, representing a 14% increase on the same period last year.

The online fashion house said UK sales were up 27% to £231.4 million, while international sales grew at a slower rate of 5%  totalling £305 million.

Profit before tax dropped 10% to £18 million, with the business investing significantly in behind-the-scenes systems, warehousing and international price points to drive sales and create a platform for future growth. The costs associated to last summer's warehouse fire also had an impact.

Today's interim statement from Asos indicated that the company remains committed to investing a total of £75 million in its technology by the end of the next financial year – not, it must be emphasised, £750 million, as accidentally referenced in the audio.

Click here to listen to Essential Retail editor Ben Sillitoe talk Asos, Net-a-Porter and online fashion retail, on Share Radio's Morning Money programme.

Click below for more information:

Share Radio Morning Money