Asos sales up a third, but profits take a hit

Asos profits have dropped by nearly a quarter following expansion investment.

The online fashion retailer’s pre-tax profits fell by 22% to £20.1m in the six months to 28 February.

However, sales grew 34% to £481.7m over the same period.

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The clothes shop warned last month costs of new German and UK warehouses as well as starting up in China would have an impact on profits. When this warning was issued, more than a fifth of its stock market value was wiped off.

Despite this, yesterday Barclays predicted Asos would have the potential to become a £100 stock in the future and said it was “one of best positioned e-commerce pioneers with a proved international model”.

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