Asos profits jump 14% on the back of strong international sales

Asos' international sales surged by 54%, thanks to a weak pound following the Brexit vote.

The online retailer is also considering further expansion in the USReuters

Popular online retailer Asos has reported a 54% rise in international retail sales to £548m, surpassing its UK sales of £341m by 62% for the six-month period ended February 2017.

Pre-tax profits rose 14% to £27.3m, while the net profit showed an increase of 16% to £22m.

The increase in international sales is attributed to the depreciating pound in the wake of the Brexit vote.

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Asos has also successfully launched its new Berlin-based Eurohub 2 distribution facility, which has been active since March. Besides, the online retail giant is considering further expansion in the US.

The cash flow was weakened by £19m to £154m due to the Eurohub 2 transition and the settlement of trademark disputes with suppliers of athletic apparel in Switzerland and Germany last year.

However, Asos is continuing its commitment to provide athletic apparel, and will sell in-house athletic clothing later in the year under the "Activewear" collection.

CEO Nick Beighton said: "These are a strong set of results, showing great progress across the business. International growth of 54% has been excellent and with the Rest of the World segment a standout performer."

"Customer acquisition, up 29%, takes our active customers to over 14m. We passed the 5m active customer mark in the UK, where we have shown solid sales growth of 18% in a more promotional market. We've accelerated our significant infrastructure and technology projects which remain on track, and Eurohub 2 went live in March."

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