Asos, the online fashion retailer, was the star of the Tempus Ten last year, with its share price surging 132 per cent. There is little sign that the company’s spectacular run will come to an end any time soon.

Yesterday’s trading update brought the mammoth Christmas retail reporting season to a close and arguably the best came last.

Asos achieved sales growth of 86 per cent over the seven weeks to January 20, despite the tougher economic climate.

Nick Robertson, the chief executive, insists that the growth rate can be sustained over the next couple of years at least.

A new warehouse has the capacity to handle £350 million of sales a year, compared with the present £75 million.

Seymour Pierce, the house broker, yesterday raised profit forecasts for the current year to March 2008 by 22 per cent to £6.7 million. It predicts £12 million in 2009.

Competition on the internet undoubtedly will intensify but by selling brands such as Oasis and French Connection online as well as its own designs, Asos has already taken steps to defend itself.

It believes it is an online department store.

Seymour Pierce has a new 320p price target, 17 times forecast 2010 earnings.

With the prospect of a maiden dividend in March and takeover approaches, there is every chance that Asos will continue to buck the wider retail trend. Buy.

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