Asos Profits Fall

We all love asos for their dynamic fashion statements and also their success story from being a relatively small company to a global online presence. asos has today reported a 22% fall in its first half profits as it has used funds to grow its infrastructure internationally.

The investment strategy by asos may be seen as risky, but its chief executive Nick Robertson has today defended the strategy stating “The expectations are high, but we have to put the infrastructure in place to grow and support this truly global business”.

Nick has a success story that most can only dream of. He founded the business and still continues to run the fashion website which is estimated to be worth £4 billion. Although trading has dropped, should we doubt the focus and the direction in which he is driving asos?

The asos group has managed to develop so much so that it has the buy in of young people in terms of fashion and has moved to acquire designer brands and also Primarks lines online. The 22% fall may be seen as negative for investors, but we think that with potential growth in the future it is possibly a risk worth taking.

We admire Roberson’s views that asos has not been about the short term, but he is building long term strategies to ensure growth and global domination (our word) for a sustainable future.

What are your views on the asos profit fall?

Abi