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Mobile-first Asos on track as profits rise

Two-thirds of worldwide traffic reaching Asos over the last six months came from a mobile device, while in the UK this figure rose to 70%. 

CEO, Nick Beighton, said mobile is now a key feature for Asos and is “dominating traffic”. 

Beighton also said the e-tailer has 17 million followers on "every conceivable" social media platform, while its active customer base rose 17% to 10.9 million over the last six months. 

“In the last 12 months, 20% of the UK population have placed an order on the Asos site,” added Beighton, noting that average basket size was £55. 

Speaking at the announcement of its interim results for the six months ending 29 February 2016, he said: “Everything seems on track.”

Asos posted profit before tax of £21.2 million, up from £18 million the previous half year. 

Meanwhile, Asos has seen strong performance in all of its strategic markets, with sales in the UK increasing 25%, as well as 31% in the EU, and 34% in the US (in constant currency). Group revenues for the e-tailer hit £667.3 million, a 21% increase year-on-year (25% in constant currency).

Last week, the e-tailer announced its decision to close down its local Chinese website after failing to gain traction in an increasingly competitive market.

Speaking to journalists earlier this morning, Beighton said the retailer wanted to draw capital into markets where it already has an “opportunity waiting for us”, pointing to the UK, Europe and the US.

He said the e-tailer has been pushing forward with logistic operations in these regions, noting the developing of ‘Euro Hub 2’ and accelerating its plans for US warehouse operations. 

Beighton also said over the last six months the e-tailer has developed 230 tech releases, whereas three years ago it would have developed this number over a 12-month period. “The quality of the deployment of technology is unrecognisable,” he added. 

 

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