U.K.-based online fashion retailer Asos intends to step up its investment in the business to boost global growth after reporting a 37% hike in full-year pre-tax profit.
The company said pre-tax profit reached £54.7 million ($88.3 million) for the year ending August 31, compared to £40 million in the same period of last year.
During each of the next two years, Asos said it will invest £55 million into its IT and logistic infrastructure to support its future growth plans.
“We have started the new financial year positively,” said CEO Nick Robertson. “Our £1 billion sales target is now firmly in our sights and we have stepped up our investment in people, technology, logistics and marketing to support the significant global potential of the Asos business.”
Retail sales jumped 40% to £753.8 million during the year from £537.9 million in the prior year. In the U.K., retail sales rose 34% to £276 million from £205.3 million last year, while international sales reached £477.8 million, up 44% on £332.6 million in the previous year.
“During the year we continued to make progress towards our goal of being the world’s number one fashion destination for 20-somethings,” Robertson addded.
“We reached the milestone of 7 million active customers worldwide, following significant investment in our product offer, delivery options, customer experience and marketing.”
Asos said its online entry into China is now in the final testing phase and will be launched imminently, adding that it aims to further establish its operations in the country during the next six months.
The online retailer, which ships to 237 countries worldwide, is also looking to grow in strategic markets such as the U.K., U.S., France, Germany, Australia and Russia.
Commenting on the results, Conlumino analyst Liz Faulkner said: “These results have once again showed Asos’ ability to achieve sustained levels of impressive growth by coupling a clear global perspective with astute understanding of its target market at a local level.
“Continued investment in perfecting its product offer, delivering an unrivaled fulfillment options and ensuring an engaging consumer experience helps keep Asos ahead of the game.”
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