Fashion retailer Asos to launch EU website following profit warning
ONLINE fashion retailer Asos is gearing up for new European website launches despite profits taking a hit as it splashed out to counter flagging overseas sales.
Asos said its strategy of cutting prices in international markets was building momentum after a string of profit warnings last year.
Margins were squeezed by the launch of a zonal pricing system, enabling it to sell items at more competitive prices in different markets around the world and counter the impact of a strong pound.
Half-year pre-tax profit fell 10 per cent to £18million although this was better than analysts had expected.
UK retail sales jumped 27 per cent to £231.4million, with international retail sales up 5 per cent to £305million.
Asos, which draws on fashion conscious customers in their 20s, said key womenswear items for the season include playsuits and jumpsuits, oversized coats and scarves, while Chelsea boots and black denim were popular menswear items.
New brands added recently include Adidas, Abercrombie & Fitch, Ellesse and Reebok.
