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A growing army of free-spending fashionistas ensured that Asos’s sales were undented by the recession.
It has emerged that the online retailers’ dedicated followers are increasingly found overseas. The company said yesterday that its international sales had more than doubled, helping turnover to increase 47 per cent.
International sales now comprise a quarter of its revenue. Nick Robertson, the chief executive of Asos, said that changing delivery charges to a flat rate made large overseas orders more appealing. The weak pound has also been a factor.
Mr Robertson said that international sales would be increasingly important if youth unemployment in the UK hit spending among Asos’s core market of 16 to 34-year-olds.
He said: “Every retailer is worried about the climate. My job is to shift more goods and we’re doing that.”
Shares in Asos fell 14.5p, or 4 per cent, to 350p yesterday as gross margin slipped, partly because foreign shoppers tend to buy more brands, which carry a smaller profit margin than Asos’s own-label ranges.
The company is about to face increased competition from bigger clothing retailers. Zara, owned by Inditex, the Spanish company, and Sweden’s H&M are both to open UK websites.Amazon’s recent purchase of Zappos, a US online fashion retailer, has prompted speculation it may follow.
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