ASOS Stock Prices Are Back Up

We see you, ASOS.
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Eliza Brooke
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We see you, ASOS.
ASOS shoes hit the street in Istanbul. Photo: Timur Emek/Getty Images

ASOS shoes hit the street in Istanbul. Photo: Timur Emek/Getty Images

This hasn't been the easiest year for ASOS. Stock prices have steadily been sinking since March, when the company announced that its sales growth had slowed somewhat; then on a Friday evening in June, the British retailer's warehouse in Barnsley, England went up in flames (although order fulfillment was impressively restored by Monday).

But things are looking up. Shares jumped 18 percent on Tuesday morning after the online retailer released its financial results for 2014. When the fiscal year wrapped up on August 31, revenue had grown 27 percent to roughly $1.5 billion, with UK retail sales up 35 percent and international sales up 22 percent. 

Thanks to continued investments in technology and in its China operations, which aren't yet profitable and have been growing more slowly than anticipated, pre-tax profit dropped 14 percent to about $75.8 million. Though, that's actually a bit above analysts' expectations. In the first six months of the year, net profits had been down 21 percent, as operating costs jumped 45 percent. 

The e-commerce company expects similar profits for 2015. As CEO Nick Robertson noted in a statement, "[ASOS is] in a period of major investment that comes at a short term cost, but the medium-term benefits will be significant."

If things go according to plan, the long-term benefits will be even greater: According to the company's report, its next goal is to achieve sales of $4 billion. 

Homepage photo: ASOS Magazine