The fall in sterling since June’s referendum vote has led Asos (LON:ASC) to see a surge in international sales.
The fashion company said the fall in the pound since the Brexit vote, had boosted exports enabling it to cut prices to it’s five million active customers in the UK.
“As a net exporter, sterling weakness has created a foreign exchange tailwind for the business which has enabled investment above previously planned levels into both price and proposition.” said the company.
Asos have said that pre-tax profits rose 14 percent to £27.3 million in the six months to February 28. In this same period, revenue surged by 37 percent to £911.5 million.
“These are a strong set of results, showing great progress across the business. International growth of 54pc has been excellent and with the Rest of the World segment a stand-out performer.” said Nick Beighton, the chief executive.
“Given the current momentum we are seeing, Asos is making good progress towards its ultimate goal of becoming the world’s number one destination for fashion-loving 20-somethings.”
Since last June, the value of the pound has fallen by almost 20 percent. Whilst this led to positive results to Asos, other companies have seen more torrid results.
John Lewis (LON:BD32) for example, warned of a “turbulent and challenging” high street with the cost pressures from the pound and the shift in consumer spending.
The fashion retailer announced plans in December to spend £40 million on renovating their office space in Camden. With the extra space, they plan to hire another 1,500 people over the next three years.
Asos now 14.1 million active customers worldwide, which is up from 10.9 million in February 2016. The fashion retailer sells over 85,000 products worldwide. The company also has local websites in the US, France, Spain, Germany, Italy, Australia and Russia.