Young buyers help online store to double its sales

Oct 2 2008 by Iain Laing, The Journal

FASHION e-tailer ASOS has produced more stunning sales figures as younger shoppers kept spending despite the slowdown gripping the rest of the high street.

Fast-growing ASOS – which stands for As Seen On Screen – said sales in the six months to September 30 were more than double last year, up 104%.

The retailer targets 16 to 34-year-olds with clothing and accessories based on those worn by celebrities, and now has 1.83 million registered users.

Chief executive Nick Robertson said its customer base “should be resilient” to the slowdown as online shopping gains popularity.

ASOS’s younger customers – especially those aged 16-24 – were less weighed down by mortgages and rising utility bills, and were still likely to be going out, he added.

Even the current crisis gripping the world’s financial system has not derailed the rapid charge of the business.

“We obviously talk to all retailers. A couple of weeks ago when the crisis was in the news we saw a slowing, but then it has picked up again,” he said.

The company, which sells 18,000 products, is also helped by its relatively low prices. The average shopper spends a total of £60 a time on two to three items.

Despite the positive sales news, ASOS saw its shares fall 2% yesterday as it warned of tougher sales comparisons in the second half of the year.

The firm will only be able to accurately assess its full-year performance after the all-important Christmas period, it added.

Seymour Pierce analyst Freddie George said: “Although these are good figures, we continue to believe the stock is fully valued...so there is no room for any slip ups and the company, in our view, cannot be immune from the economic slowdown.”

ASOS, which is based in Hemel Hempstead, Hertfordshire, has around 700 staff. Earlier this month it launched a new site, ASOS Red, which will be used to clear end of season stock.

A couple of weeks ago ... we saw a slowing, but then it has picked up again