📈 Profits Soar
ASOS reported a 43% profit increase, reaching $64.5M for the year ending March 31. Group revenue jumped 46% to $780.5M. The fashion retailer met analyst forecasts, with shares peaking at 2,508p last June. However, the stock has since fallen to 1,546p, valuing ASOS at $1.9B.
🌍 International Boom
ASOS' international retail sales more than doubled, now making up 59% of total sales. Country-specific websites in Australia, Spain, and Italy fueled this growth. Meanwhile, UK retail sales rose just 7%, reflecting weaker local demand. The global expansion helped offset slower domestic performance.
📉 UK Struggles
While ASOS thrives abroad, UK growth slowed, with Q4 retail sales up 34%, down from 46% in Q3. Rising youth unemployment in the UK may be impacting demand. Gross margin, however, improved by 180 basis points, providing some financial cushion against domestic headwinds.
🚀 Eyes on $1.6B Target
CEO Nick Robertson remains bullish, aiming for $1.6B in sales by 2015. "We’re on track to be the world's No. 1 online fashion destination," he said. With international expansion driving growth, ASOS is betting big on global markets to hit its ambitious revenue goals.
Will ASOS' global push be enough to counter UK weakness?
