Booming overseas sales keep Asos on growth trail

ASOS, THE online fashion retailer, said its international salesovertook those in the UK for the first time in the fourth quarter,as its booming growth shows little sign of slowing.

Despite tougher trading conditions in the UK, Asos forecast thatits pre-tax profits for the year to 31 March would be towards thetop end of City expectations of between 26m and 29m.

Over the last quarter, Asos posted group retail revenues up by 70per cent to 93.38m.

Nick Robertson, the chief executive, said: "With internationalbecoming an increasingly significant part of our future, I waspleased to see our international sales mix exceed that of the UK forthe first time, accounting for 52 per cent of our retail sales."

Asos delivered international sales up by 161 per cent to 48.43m,boosted by its dedicated websites in the US, France and Germany. ItsUK business grew sales by 24 per cent to 44.95m.

The online specialist cited a strong performance of its own-brand slim-fit chinos and Asos Wayfarer sunglasses for men, andwomenswear, including pleats, pencil dresses and its Jersey micro-mini skirts.

The retailer said it had delivered a "small increase" in grossmargin.

Mr Robertson said: "We have approached the new financial yearwith confidence and are excited about the prospects for both our UKand international businesses."

Despite British consumers being under financial pressure, Asos'sUK business continues to stretch ahead of the 20 per cent growthinternet non-food sales in the wider market.

John Stevenson, the analyst at Peel Hunt, said: "This was anencouraging result, while we had expected a level of internationaloutperformance against forecasts, we had feared the UK may havedisappointed, which has proved not to be the case."

UK sales were promotion driven, however, with customers"requiring incentives to spend".