ASOS on the rise despite drop in profits

AIM-listed online clothes retailer ASOS (LON:ASC) has seen its share price rocket by 20.63% to 3,088p (as of 13:30 BST) despite profits before tax for the year ended 31st August falling by 68%, due to substantial restructuring and transition costs. Revenues for the period grew by 13% over the period.

CEO Nick Beighton commented: “This financial year was a pivotal period for ASOS, where we have invested significantly and enhanced our global platform capability to drive our future growth. Regrettably this was more disruptive than we originally anticipated. However, having identified the root causes of our operational issues, we have made substantial progress over the last few months in resolving them. Whilst there remains lots of work to be done to get the business back on track, we are now in a more positive position to start the new financial year.

Our focus now shifts to ensuring that we enhance our capability to drive an improved customer experience and leverage the benefits from the investments we have made. With over 60% of our revenue coming from international customers and a strong global logistics platform with capacity to grow, we are well positioned to take advantage of the global growth opportunity ahead of us“.