Britain’s largest online-only fashion retailer ASOS will invest more in expansion as it has raised growth forecast on the back of strong Black Friday and Christmas sales. The company reported total revenues of £ 621.3 million in the last four months of 2016, 36 per cent up on the same period a year earlier.
The fashion retailer also highlighted the reinvestment they had made to boost their gain from foreign exchange movements into price cuts, and that as a result it now expects full-year sales growth to be between 25 per cent and 30 per cent. It previously forecast 20 per cent to 25 per cent surge in sales.
Nick Beighton, ASOS’ Chief Executive said the faster growth require higher investment in infrastructure to cope. The company will now spend up to £ 170 million this year, against the previously planned maximum of £ 140 million.
Also Read – ASOS to double its production in UK
Also, ASOS will invest in a new warehouse in the US with up to 10 times more capacity than its current facilities. Though it accounts for less than a tenth of revenues, the US operation increased sales by two thirds on last year.
Overall growth in international markets outpaced ASOS’ progress at home. International retail sales of £ 361.7 million were up 52 per cent on the same period a year earlier, and 41 per cent on a constant currency basis.
