Asos heads overseas

But the share reaction to the AIM-listed retailer’s announcement on Monday was jittery after the online retailer revealed that first-quarter sales grew “only” 52 per cent. Asos chief executive Nick Robertson’s words that “the rate of growth in online sales has begun to moderate” did not sit well. However, investors should grasp this opportunity, as without doubt Asos will continue to be a winner.

While growth in the online market has slowed, Verdict still predicts growth of more than 11 per cent in the online clothing market by 2013.

The retailer has also set its sights on being seen on screens all over the world. Full-year international sales rose 303 per cent to £32.2m and more than doubled in the first quarter. International sales now account for 20 per cent of all sales.

The growth prospects for Asos, which did not pay a dividend because it recognises substantial investment opportunities, are numerous.

Asos is expected to outline its international expansion plans later in the year, but the retailer has hinted that the US, France and Germany present the biggest opportunities. They are already well established in the US and French shopper mindsets and the continual addition of international brands to their stable will no doubt boost their standing and brand awareness.

Gap, Mango and Ralph Lauren are among the latest names to join the site, which has 820 brands on offer, and it already ships to nearly 60 countries.

Asos’s model should be admired by its fashion peers and all attempts should be made to replicate its success, indeed John Lewis – not widely (as yet) renowned for its fashion forward strategy – is set to unveil its own version of the Asos model in the autumn. And Tesco will replicate elements as part of their much-anticipated fashion website due to go live in September.

However, few can outshine Asos at the moment. The retailer is rightly continuing to bask in its moment on the red carpet.