Tue, 30th Oct 2018
Shares in British online fashion retailer ASOS have bounced back, as the company benefits from a shift to online shopping. The company is enjoying soaring profits, and has exceeded its forecasts for the year so far. In its recent report it said that it had enjoyed another year of double digit sales growth. The news has helped to boost shares in the company.
ASOS expects to see a £4 billion year of trading, up from £2.4 billion the year before. Chief Executive Nick Beighton says that the company is eyeing up a significantly bigger prize than that. He believes that ASOS has huge potential, and he says that the company is investing heavily to meet it.
ASOS focuses primarily on 20-something shoppers, and invested 242 million in its infrastructure in the 2017-2018 financial year, with warehouses and IT being a huge part of that. They plan to continue that investment pattern to support more growth.
Currently, online sales account for almost on quarter of the UK’s clothing market, and that figure is expected to grow over the next five years. The US and Europe are showing similar growth patterns. ASOS has a market share of 7.5 percent in the UK but is quite small overseas, with a market share of just 0.5 percent in the United States and 1.6 percent in Europe, so there is a lot of potential for the company to expand to other territories and take advantage of the growth of the sector.