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| Asos half-year profits fall but sales rise boosts share price | Asos half-year profits fall but sales rise boosts share price |
| (35 minutes later) | |
| Price cuts and investment in its international business drove down profits at online fashion retailer Asos in the first six months of the year. | Price cuts and investment in its international business drove down profits at online fashion retailer Asos in the first six months of the year. |
| But despite the 10% fall in profits shares | But despite the 10% fall in profits shares |
| rose 6.8% to £38.76. | rose 6.8% to £38.76. |
| A record Christmas trading period, when sales increased by 14%, was not enough to lift profits for the first half overall. | A record Christmas trading period, when sales increased by 14%, was not enough to lift profits for the first half overall. |
| Pretax profit fell to £18m in the six months to end-February, from £20m over the same period a year earlier. Revenue rose 14% to £550m. | Pretax profit fell to £18m in the six months to end-February, from £20m over the same period a year earlier. Revenue rose 14% to £550m. |
| Nick Robertson, chief executive, said: “With our continued investment in our international price competitiveness gaining traction, momentum in the business is building. This gives us confidence in the outlook for the second half and that full year profit and margin will be in line with expectations.” | Nick Robertson, chief executive, said: “With our continued investment in our international price competitiveness gaining traction, momentum in the business is building. This gives us confidence in the outlook for the second half and that full year profit and margin will be in line with expectations.” |
| UK sales jumped 27% over the first half, while international sales increased by 5%. | UK sales jumped 27% over the first half, while international sales increased by 5%. |
| It follows a torrid time for the retailer, whose ranges are targeted at “fashion conscious twentysomethings”. Last year Asos suffered a fire at its main warehouse in Barnsley and issued a series of of profits warnings, while adverse currency movements hit international sales. | It follows a torrid time for the retailer, whose ranges are targeted at “fashion conscious twentysomethings”. Last year Asos suffered a fire at its main warehouse in Barnsley and issued a series of of profits warnings, while adverse currency movements hit international sales. |
| Robertson, who co-founded Asos in 2000, sold about £20m of shares in the company in January, amounting to about 10% of his holding. It left him with an 8% stake and the company’s second-largest shareholder. | Robertson, who co-founded Asos in 2000, sold about £20m of shares in the company in January, amounting to about 10% of his holding. It left him with an 8% stake and the company’s second-largest shareholder. |
| Asos sells its own brands, as well as third-party brands and high street names such as Mango, French Connection, and River Island. | Asos sells its own brands, as well as third-party brands and high street names such as Mango, French Connection, and River Island. |
| It said that among its bestsellers in the first-half were playsuits and jumpsuits, shirts, trainers, oversized coats and scarves. It added: “We increased our gifting range with a more extensive selection of beauty, men’s grooming, novelty gifts and also more traditional items such as nightwear. | |
| “In addition, events such as Halloween and Valentine’s Day are becoming increasingly important to our customer and we have responded by adding specific ranges for these celebrations.” | “In addition, events such as Halloween and Valentine’s Day are becoming increasingly important to our customer and we have responded by adding specific ranges for these celebrations.” |