Asos is height of fashion after online sales boom
Shares in Asos hit an all-time high after the online fashion retailer proved that Britain has not broken its shopping habit despite spending cuts and the VAT hike.
Bucking the trend: UK sales jumped 24%
With profits warnings from a string of retailers such as Dixons, Mothercare and HMV, it seemed a chill had set in on the high street.
But online shoppers at Asos are still filling up their baskets with the latest trends such as pleats, midi length skirts and coloured chinos.
Its UK sales jumped 24% in the first quarter as 'fashionistas' took advantage of its broad range of labels, its next day delivery option and free returns. Shares jumped 14%.
Strong results from retailer JD Sports Fashion showed that shoppers weren't just splashing out online.
The sportswear retailer's full year profits rose 28% to £78.6m as its customers rewarded it for its focus on fashion.
Its dividend went up 28% to 23p a share. The numbers were in contrast with its beleaguered rival JJB Sports which has suffered a sharp fall in sales and was recently saved from administration for the second time in two years.
Ramona Tipnis, an analyst at stockbrokers Shore Capital, said: 'These results clearly show that the more affluent younger end of the clothing market is still delivering results as long as the offering remains relevant to the customer base.'
But a gloomy outlook from JD Sports' executive chairman Peter Cowgill sent shares in JD Sports tumbling 64p to 837.5p.
In contrast Asos shares jumped 243p to an all-time high of 1950p despite warnings from analysts first thing in the morning that they were already priced for perfection.
Asos has gone from strength to strength. Standing for 'as Seen on Screen' it was set up in 2000 by its chief executive Nick Robertson to sell clothes to 17 to 34-year-old females that wanted to copy the look of celebrities for a fraction of the price. It has grown to 850 brands.
Its shareholders have reaped the benefits of its success. It floated at 23p a share in 2001. Yesterday the aim-listed dotcom success story, which is chaired by Labour peer Lord Waheed alli, commanded a stock market valuation of £1.5bn. Robertson is sitting on a stake worth more than £150m. Danish retailer Bestseller has increased its share to 20.3% from 16.5% since the start of the year.
Asos's international sales jumped 161% to £48.4m, leapfrogging UK sales for the first time. Countries such as Australia have proved the 'bonus ball' in the overseas sales numbers, Robertson said.
Asos shares over the past two years
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