Profits soar 37% at ASOS

Online retailer enjoys 26% uptick in sales despite warehouse controversy

ASOS has reported a 37% increase in profits to a total of £63.7m thanks to increasing customer engagement and strong growth in the UK and US.

CEO Nick Beighton said that he was “pleased” with the results and that they reflected the company’s “unwavering focus on delivering great customer experience”.

He said: “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 are looking forward to with confidence.”

The pace at ASOS is continuing in the new financial year, which are looking forward to with confidence.”
Nick Beighton, CEO, ASOS

ASOS also reported a 25% increase in its number of active customers and a 3% increase in the average basket value.

The retailer said that the profit increase was largely due to “strong product” as well as an improvement in delivery services.

ASOS has introduced a four-hour delivery window for standard delivery items and extended the cut-off for its Next Day Delivery and Click and Collect services.

The results come as ASOS is the subject of criticism over working conditions in its UK warehouse. The company disputes the accusations, calling them inaccurate.

In a statement, ASOS said: “Contrary to what has been alleged, we do currently pay above the National Living Wage for all employees and are committed to migrating towards the Living Wage Foundation over the next 18 months.”

David Cheetham, Market Analyst at XTB, told Cosmetics Business: “One potential blot on the release may come in the fall in diluted earnings per share which has shown a rather sharp decline of more than a third in the past year, but having said that remains relatively healthy at 29.3p.”

He added: “This drop is like a side effect of the planned expansions which have caused short term margins to be squeezed somewhat.”

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