Sunday 23rd Jun 2019 - Logistics & Supply Chain

ASOS increases logistics investment to boost capacity

ASOS, the online fashion retailer, has accelerated its investment in warehousing both in the UK and Germany and in IT. It will now invest at least £68m in capital expenditure in the current year compared to the £55m previously planned.

The aim is to increase sales capacity to some £2.5bn per annum, over £1bn higher than previous guidance.

Chief executive officer Nick Robertson said: “Our investment in warehousing necessitated levels of dual running costs over the period which will ease from H2 2014/15.”

And he warned: “This investment, as well as the investment in our China start-up, will reduce our EBIT margin for the current financial year to 31 August 2014 to c.6.5 per cent. This year these costs will be disproportionately borne in H1, resulting in a likely H1/H2 Profit before Tax split of approximately 30 per cent/70 per cent.”

In a trading statement, ASOS said sales in the six months to 28h February were up 34 per cent to £481.7m and the group now expects to achieve full year sales of more than £1 billion.

Strongest growth was in the EU (excluding the UK) where sales were up 65 per cent to £127.6m for the first half.

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