Asos has broken through the £1bn revenue mark as the online shopping giant's top line jumped by 18% from £975.4m in 2014. The firm saw a strong increase in UK sales specifically, of 27%.
Operating profit for the online retailer only edged up by 1% to £47.5m (€64.86m, $73.48m), largely due to a strong increase in administrative expenses, which were up 24%. Payroll and staff costs were up almost a third, narrowing the brand's margins.
Chief executive Nick Beighton commented that the increase in profit was on track with the firm's plans. "I'm pleased with these results, which show encouraging progress. We are attracting more customers with a continued expansion of our delivery proposition and mobile offerings. Customer engagement has been exceptionally strong, with increases in average order frequency, basket size and value. We now have 9.9m active customers, up 13%."
Asos is aiming at £2.5bn sales in the future as the brand continues to expand. It expects a further revenue increase in 2016 of 20%. The firm announced it invested £50m in warehouse capability and technology in 2015 and is planning a further £80m investment in 2016.
The firm's founder Nick Robertson stepped up as CEO after 15 years leading the company. Beighton, who worked as chief operating officer took over with immediate effect. Beighton has worked as CFO as well, starting at the company in 2009.
As fast delivery increases pressure for online shopping brands to beat the competition, Asos extended next-day delivery as well as weekend deliveries. It now offers next-day parcels delivered across several countries in Europe, and the firm added Singapore, Korea, Hong Kong and several other territories to the list of countries it sends fashion items to.