ASOS, the British online fashion and beauty store, announced that their sales have increased with 30% in the past four months to June.
One of the reasons that led to such a growth was the decision to close their loss-making Chinese business. They are now looking forward to investing £2 million in other markets and escape this impediment on earnings.
Although most of the retailers feared the Brexit result will affect their sales, ASOS can proudly confirm right the opposite. Because the sterling has dropped from $1.50 to $1.30 on 23rd of June, the day of the EU Referendum, it enabled UK based retailers to become more competitive in the overseas markets.
Their sales were strong both in the UK, with a rise of 28% to £203 million, and internationally, with a rise of 31% to £297 million. This was more than good news for the store, as approximately 60% of its sales are generated overseas.
ASOS, which stands for As Seen On Screen, was set up in 2000, and it’s due to unveil their annual results in October. Nick Beighton, the CEO of the store says that the profits for 2016 will meet the expectations, with analysts forecasting a 28% boost in pre-tax profits to £61 million.
Last year, the sales between March and June were £386 million, compared with this years’ sales of £500.5 million. The number of active customers has also increased by 24%, making it to 12 million.
Their strongest performances came from UK, US, and Europe and by the sound of their forecasting they are planning on investing even more in their business and gaining more customers and higher annual profits.