Asos profits plummet by 87% amid expansion
Asos has blamed expansion costs and heavy discounting after its half-year profits nose-dived.
The online fashion retailer saw pre-tax profits crash 87% to £4m - a decrease that the company blamed on "temporary transition costs" linked to its warehouses in Europe and Atlanta.
In the US, Asos was hit by staffing issues, resulting in a backlog of orders.
In Europe, the company is in the process of automating its warehouse in Berlin.
Sales grew 14%, or 12% at constant currency, to £1.3bn in the six months to February 28. UK sales rose by 16% and international sales by 12%.
But the firm bemoaned a "disappointing" set of figures, pointing to costs relating to adding new warehouse capacity and a high level of discounting and promotional activity across the market.