Asos profits boosted by weak pound

Asos is benefiting from a post-referendum slump in the pound as overseas sales drive profit growth.

The online fashion retailer said pre-tax profits rose 14% to £27.3 million in the six months to February 28, while retail sales increased 38% to £889.2 million.

The fall in the pound and the shift to online spending helped lift international sales by 54% to £548.4 million.

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But it wasn’t just young overseas customers who ramped up their spending during the first months of the year; Asos also recorded an 18% increase in sales in the UK during this period.

Asos CEO Nick Beighton said: “These are a strong set of results, showing great progress across the business. International growth of 54% has been excellent and with the Rest of the World segment a stand out performer.

“Given the current momentum we are seeing, ASOS is making good progress towards its ultimate goal of becoming the world’s no. 1 destination for fashion-loving 20-somethings.”

Asos’ website attracted 127 million visits during February 2017, up 19% on last year, and as of February 28, it had 14.1 million active customers, of which 5 million are located in the UK.

“Customer acquisition, up 29%, takes our active customers to over 14m. We passed the 5m active customer mark in the UK, where we have shown solid sales growth of 18% in a more promotional market,” said Beighton.

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