Shares in Asos (LON:ASC) fell on Wednesday morning, despite the retailer reporting a 10 percent rise in half-year profits.
The online retailer posted a 27 per cent rise in sales to £1.13 billion for the six months to 28 February, compared with the previous year.
Overall, international sales grew by 31 per cent and UK sales up by 22 per cent.
However, shares fell on Wednesday morning, after the company committed to investing more than £250m in distribution and infrastructure to cope with demand.
Chief Executive Nick Beighton commented on the results:
“These results show strong trading at the same time as we are making substantial investment in our future,”
“Our customer engagement is going from strength to strength and we’ve achieved more than a billion site visits for the first time”.
“Alongside our investment in our people and our technology, we are accelerating investment in our distribution and logistics, laying the foundation for £4bn of net sales, a further step in building Asos into the world’s number one destination for fashion loving 20-somethings.” He added.
Asos has continued to go from strength to strength in recent years, as the brand capitalises upon the shift towards online shopping.
However, its strong performance has not been without its challenges.
Last year, Asos was the subject of controversy after the company was hit with allegations of poor working conditions at its warehouse.
Ultimately, investors remained unimpressed by the figures amid persistently high costs.
Asos has spent around £95 million this year alone on technology upon infrastructure development across its supply chain and head office.
A large portion of Asos funds are invested in developing the brand’s mobile app, after the retailer found that 58 percent of purchases were made through mobile phone devices.
The fashion store is currently listed on the aim market on the London Stock Exchange.
Asos, which stands for As Seen on Screen, has been in operation since 2000.
Shares in the company are currently trading -3.34 percent as of 11.59AM (GMT).