Online-only fashion retailer ASOS generated $1.72 billion in sales and is focused on expanding its warehouse network in Europe.

British online-only apparel retailer ASOS Plc posted retail sales of 1.12 billion pounds ($1.72 billion), for its 2015 fiscal year that ended Aug. 31, a 17% increase from 955.3 million pounds ($1.47 billion) a year ago.

Mobile commerce was a key driver for ASOS, which ties in with is target audience of consumers in their twenties. In the past year there were 5.4 million downloads of the ASOS mobile app. In August, mobile devices accounted for 60% of traffic and 44% of sales, ASOS said. Earlier in the year the fashion retailer launched a new version of its app for Android iOS in France, Germany, Italy, Spain and Russia, followed in September by a localized app in China. ASOS also launched an Apple Watch app and a mobile news website.

New CEO Nick Beighton projects that improvements in logistics and technology will help ASOS double sales in its 2016 fiscal year to 2.5 billion pounds ($3.86 billion).

Beighton, who took over from co-founder and former CEO Nick Robertson in September, said, “During the year we invested £50m in our warehouse capability and our technology, and we are investing a further £80m in the new financial year.”

The retailer continues to expand its warehouse capacity in the United Kingdom and abroad. In June 2014 an ASOS warehouse in Barnsley, U.K., caught fire, but the warehouse is functioning normally and expansions will extend storage capacity to an additional 1 million units. A warehouse in Germany stocks 2 million units and is responsible for 38% of total EU orders. ASOS will build a new Eurohub warehouse in the next couple of years, which, along with automation technology, “will eventually provide us with total capacity of 20 million units and represents an extensive project for us over the next four years,” the company said.

advertisement

Warehouse capacity in the U.S. will remain the same as the Eurohub project advances, ASOS said. A U.S. warehouse in Ohio fulfills 25% of orders in the United States.

Technology costs have risen 29% year over year to 19.7 million pounds ($30.3 million) in fiscal 2015 from 15.3 million pounds ($23.5 million) in 2014. “We continued with our modular approach to the re-platforming of our legacy systems, enabling us to provide the necessary flexibility and scalability for the future,” the company said.

For the 12 months ended Aug. 31, ASOS, No.17 in the Internet Retailer 2015 Europe 500, reported:

  • Group revenue of 1.15 billion pounds ($1.77 billion), up 18.0% from 975.4 million pounds ($1.50 billion) in fiscal 2014. Group revenue includes retail sales, delivery receipts and third-party revenue.
  • Retail sales of 1.12 billion pounds ($1.72 billion), up 17.2% from 955.3 million pounds ($1.47 billion)
  • U.K. online sales of 473.9 million pounds ($730.8 million), a 27.3% increase from 372.2 million pounds ($574.0 million).
  • International e-commerce sales of 646.1 million pounds ($996.1 million), up 10.8% from 583.1 million pounds ($899.0 million).
  • Average order, including value-added tax, of 68.74 pounds ($105.99), up 9.4% from 62.8 pounds ($96.83).
  • Pretax earnings of 47.5 million pounds ($73.1 million), a 1.3% increase from pretax earnings of 46.9 million pounds ($72.2 million) last year.
  • Active customers increased to 9.95 million, up 12.5% from 8.85 million the previous year.
Favorite