Asos Net Profit Fell, But Sales Of Underwear Increased.

Due to logistics, information technology platform and expansion of China market A lot of money has been invested, even though the revenue has increased by 33.9% to 48 million 170 thousand pounds (78 million 40 thousand US dollars). The profit of Internet retailer Asos in the past six months is still on the rocks, only 15 million 300 thousand pounds, or 24 million 800 thousand US dollars, down 21% compared to the same period last year.

Over the same period, Asos's operating costs rose by 45% to 22 million 310 thousand, or 36 million 140 thousand. This is mainly related to increased reserves in the UK, China and the United States. In addition, the company has increased fiscal efforts in digital marketing and recruiting new employees.

Asos has invested 3 million 700 thousand pounds, or 5 million 900 thousand US dollars, to enter the Chinese market. By the end of August this year, the company's business investment will remain at 9 million pounds, or 14 million 600 thousand dollars. Asos forecasts that this year's capital expenditure will be 68 million pounds, or about 110 million 200 thousand US dollars.

The company pointed out that reinvestment in business is aimed at gaining sales growth of more than 1 billion pounds (US $1 billion 660 million) in the future, and believes that "today's global market is bigger than ever, and these investments will generate an annual benefit of at least 2 billion 500 million pounds (US $4 billion 160 million)".

Nick Robertson, chief executive of Asos, said: "the acceleration of investment has weakened our ability to make profits, but in the long run, we will significantly increase operational capacity and efficiency."

　　 Asos As early as March 18th, the investment increase point has been explained in detail and the sales forecast has been made. At the end of Thursday, Asos's share price on the London Stock Exchange rose 1% to 52.06 pounds, or 86.7 dollars.

Bernstein Research's survey shows that Asos's investment strategy is reasonable: with the increase of capital investment, the company will gain stronger strength and occupy a more advantageous position. Bernstein's investment strategy is reasonable.

Regionally, Asos's retail sales in the UK rose by 32% to 182 billion pounds, or about 470 million 300 thousand dollars. Sales in the US increased strongly, rising 31% to 46 million 700 thousand pounds, or about 75 million 700 thousand US dollars, and sales in Europe increased by 65% to 127 million 600 thousand pounds, about 206 million 700 thousand US dollars.

In other regions, Asos sales increased by 14% to 115 million 900 thousand pounds, or about 187 million 800 thousand US dollars. Russia and Australia are affected by exchange rate fluctuations. Asos believes that this affects the price competitiveness of the brand in the local market. In response to this problem, the company plans to introduce a local pricing system to make the brand competitive at the local price while promoting promotional activities.

Asos pointed out that the new products of the autumn 2013 series and clothes The expansion of code number is good. The effectiveness of underwear products under the brand has been increased.