Asos targets £2.5bn in annual sales by 2020

Asos has set itself a target of £2.5bn in annual sales by 2020, despite profits falling by 14 per cent.

Today, 21 October, it reported profits of £46.9m in the year to 31 August 2014, down from £54.7m for the previous year.

Asos said the stunted growth was in part due to the warehouse fire at its Barnsley depot in June – which forced it to cease trading for a short period - as well as the launch of the business in China.

However, overall sales increased by 27 per cent to £955.3m.

Chief Executive Nick Robertson said that it anticipated flat profits for 2014-15 and "a small increase" for 2015-16.

However, it hopes to achieve a 10 per cent growth each year in its active customer base for the next five to six years.

Robertson said this would add another billion pounds of sales which would make the £2.5bn target "achievable” by 2020.

Asos sales increased by as much as 19 per cent following the earnings report.

The retailer has also promoted chief financial officer Nick Beighton to chief operating officer.

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