ASOS, the fast-growing online clothing retailer, is to target dedicated followers of fashion overseas in a bid to achieve £1 billion a year in sales.
The firm, whose name stands for As Seen On Screen, has become one of the biggest internet retailing success stories since its launch eight years ago.
Targeting net-savvy 16- to 34-year-olds with clothing and accessories based on those worn by
celebrities, it boasts almost two million registered users.
Unveiling a 68 per cent jump in interim profits and a 107 per cent surge in sales, chief executive Nick Robertson said it was realistic to think the group could achieve an annual turnover of £1bn ten years from now.
"I think that is achievable," he told The Scotsman. "You've got to compare us with the internet growth, not high street growth.
"Internet shopping is about a fewer number of bigger stores. People tend not to shop at as many shops on the internet as on the high street."
The group's growth plan will involve a push into overseas markets, using dedicated local language websites and support. Jon Kamaluddin, the current finance director, will take on the role of international director.
Robertson said it was too early to pinpoint territories, but added: "I've got the right man in the job. There will be a lot more meat to put on the bones at some point."
Asos banked £4.1 million profits for the six months to 30 September. Sales topped £65.7m, with the momentum continuing in the first seven weeks of the second half, up 104 per cent against 107 per cent in the first half.
Robertson said he was very pleased with the numbers against "an even worsening economic climate" in recent weeks.
He said a significant factor in the company's performance was the rise in the number of options available on the website.
Asos increased the number of product lines by 238 per cent year on year to 19,400, with some 1,150 new lines introduced on to the site each week. It more than doubled the number of brands on offer to 700 by 31 October, up 135 per cent on the previous year. In the same period, the number of active customers – those who shopped on the site in the past six months – almost doubled year-on-year to 947,000.
The firm, which has its headquarters in London, put its "resilient" performance partly down to the spending power of its younger clients – people aged 16 to 24 account for about half of Asos's customer base.
"They don't have the mortgage or utility bill burden," Robertson said. "You're not going to tell the average 22-year-old that she can't go out on a Friday night."
He said the proportion of fashion bought online was set to double to 10 per cent or so in the next few years.
Investec Securities said Asos had produced "slightly stronger sales than forecast".
Analyst Natalia Marisova left full-year estimates unchanged, with the company expected to post profits before tax of £13.5m in the year to March. She said there was "cautious optimism" for the future but warned Asos would not be immune to the financial pressures affecting the whole retail industry.
Seymour Pierce analyst Freddie George said: "The stock, after declining by almost 30 per cent in the last quarter, is now more fairly valued at 20.2 times earnings based on our pre-tax profit forecast of £14m for the current year (to end-March 2009]."
