Asos enjoys strong overseas demand

Online fashion retailer ASOS has reported an increase of 47 per cent in sales for the period of six months ending September 30, but added that soaring unemployment among youth in UK has affected its sales adversely.

ASOS boasted that overseas shoppers now accounted for almost a quarter of all its business.

ASOS said trading during the six months to 30 September is strong as well as in line with experts' projections.

But, ASOS shares dropped 2 per cent as the rise in sales was down as compared with the 52 per cent increase in sales reported for the first three months of the financial year.

AS per City forecasts ASOS will enjoy an increase of 40 per cent in the full-year sales, while profit will soar to £19 million, up from £14 million previous year.

ASOS will have to face a cut-throat competition as Europe's leading fashion retailer, Inditex, has plans to launch its Zara brand online in 2010.