- 11 April 2018
- Transport / Logistics Services
As part of its target of £4 billion in net sales, ASOS has accelerated its investment and logistics. This is according to the company’s half year (H1) report.
Operating profit at ASOS rose to £29.7 million in the half year to 28th February, from £27.4m the year before. Revenue was up 27 per cent at £1.16 billion.
Chief Executive Nick 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.”
ASOS international sales grew by 31% to £716.8 million, and UK sales were up 22% to £414.5 million.
Logistics and distribution investment amounted to £95 million in H1, which included extending the Euro hub, a new warehouse in the US, as well as increasing its capacity at the UK Barnsley site.
“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 per cent complete and on track for completion before peak trading. Good progress is also being made on the new warehouse management system which will be installed at the start of FY19,” it said.
“The new US warehouse has also made significant progress since the start of the financial year. A variety of improvements have been made to the site in addition to the installation of a storage mezzanine and parcel despatch sorter, both of which are on track to being operational by the end of the year.
“Within our UK hub at Barnsley, work is currently underway to increase the stockholding capacity through the construction of an additional mezzanine. This will increase capacity by a further 10 per cent to 22 million units and is scheduled to complete by the end of April. All of these investments will combine to deliver future capacity for £4 billion of net sales,” it said.