ASOS boosts logistics investment to hit £4bn sales target

Author: Alexandra Leonards

ASOS is accelerating its investment in distribution and logistics to create the capacity to reach £4 billion of net sales, chief executive Nick Beighton said as the company unveiled a 27 per cent increase in first half sales.

Operating profit at ASOS rose to £29.7 million in the half year to 28th February, rom £27.4m the year before. Revenue was up 27 per cent at £1.16 billion.

Beighton said: “Our customer engagement is going from strength to strength and we’ve achieved more than a billion site visits for the first time. Alongside our investment in our people and our technology, we are accelerating investment in our distribution and logistics, laying the foundation for £4 billion of net sales, a further step in building ASOS into the world’s number one destination for fashion loving 20-somethings.”

International sales rose 31 per cent to 716.8m while UK sales were up 22 per cent to £414.5m.

ASOS invested some £95m in its facilities in the first half. Logistics investments include extending its Euro hub, a new US warehouse and increasing capacity at Barnsley. Total capex will be between £230m to £250m in both the current and the following two financial years

“The Euro hub phase two extension is progressing at pace and to plan. Within the first half, handover of the site was completed along with delivery and commencement of installation for the automated storage system. This automated storage system is currently 50 p

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