Fashion firms' rags to riches

Asos and Zara have shown rivals a clean pair of heels by revealing a surge in profits.

The fashion firms yesterday posted bumper results, proving shoppers are still willing to splash the cash if the price is right.

Online store Asos defied the recession by announcing that profits had jumped 44% - to £20.3million in the year to April - as sales soared 35% to £223m.

And business is getting stronger, with takings up 36% in the UK and a whopping 118% overseas during the last nine weeks.

Asos has prospered by targeting the 16-34 age range with a combination of its own fast fashion and almost 900 big-name brands. Launched a decade ago, it is now valued at almost £500m - more than French Connection, Moss Bros and Mulberry put together.

The site, which handled almost four million orders last year, has 1.6 million regular customers who spent an average of almost £63 on each cyber shopping trip.

Delighted bosses at the store reacted to the news by setting themselves a target of hitting £1billion of sales within five years.

The firm took on 177 extra staff last year and is building a new £20m distribution depot in Barnsley.

Founder Nick Robertson said: "We are more confident than at this time last year, with both UK and international sales accelerating well."

He announced plans to allow customers to collect online orders at an as-yet named high street chain after rival retailers enjoyed success with their "click and collect" offers.

The firm is also adding an eBay-style "marketplace" section on its website for shoppers to sell unwanted clothes.

It came as Zara revealed plans to launch its own online store in the UK this September after enjoying storming high street success.

Spanish owner Inditex's profits have soared 63% to £249m during the last three months as sales rose 14% to £2.2bn.

The fashion giant, with more than 4,700 shops in 77 countries, recently opened its first store in India.