Asos has reported a 10% fall in half-year profits to £18m, driven by price cuts and investments in its international business.
Retail sales climbed by 14% in the six months to February 2015, helped by a record Christmas trading period, but this wasn’t enough to boost profits.
Chief executive Nick Robertson said: “With our continued investment in our international price competitiveness gaining traction, momentum in the business is building. This gives us confidence in the outlook for the second half and that full year profit and margin will be in line with expectations.”
UK growth remained strong with sales up 27% and international sales up 5%.
While revenues are growing at a slower pace, customer retention and attraction is up. During February Asos generated 88 million website views.
“Our customer engagement remains high, with growth in visits, average order frequency, average basket size and conversion all improving. Our active customers grew by 13%, exceeding the 9m mark for the first time,” said Robertson.