Steve Hawkes
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Asos, the online fashion retailer, today said that increasing numbers of shoppers were switching to the internet in the current economic downturn as it revealed that sales had doubled over the past six months.
In stark contrast to the doom and gloom on the high street Asos said that more customers were coming to the website and were spending more money.
Sales in the six months to September 30 were 104 per cent up on the same period a year ago. The sales growth has accelerated from 80 per cent last year and 95 per cent earlier this spring.
Full-year profits are expected to hit £13 million, compared with £8.3 million in the last financial year.
Nick Robertson, chief executive of Asos, said: “We are building momentum. We’re not seeing any slowdown.”
Asos made its name by selling clothing modelled on designs worn by celebrities, such as Kate Moss and Sienna Miller. It now sells more than 17,000 products, including designs by 600 other brands, such as French Connection and Calvin Klein.
Mr Robertson believes that Asos can overtake Next to become Britain’s biggest online fashion store within the the next two or three years.
A recent survey by PriceWaterhouseCoopers claimed that more than half of all retail sales growth would come from online between now and 2012.
Mr Robertson said that Asos was “cautious” about next year because of the economic turmoil. He added: “Things being equal, we will be fine. Clearly things are not equal but, fundamentally, the model is absolutely sound.”
Shares in the company, which have more than doubled in the past year, fell 7.75p to 343p.
David Stoddart, retail analyst at Altium Securities, said: “Asos remains in that select group of retailers that enjoys a net cash position, which will see it through recession, and possesses long-term expansion potential.
“In addition, Asos has an additional advantage: its forecasts continue to be increased.”
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