Asos denies brand revolt as green shoots emerge from zonal pricing

Asos chief executive Nick Robertson has rubbished reports that claimed leading clothing brands were unhappy with the discounts offered on their products by the online fashion retailer, which plans more price cuts overseas to boost sales.

Newspapers recently reported that several major brands had threatened to pull their products from the website due to frustrations with the discounts Asos was offering on their clothes, particularly in the run-up to Christmas last year.

"I can categorically say that not a single brand contacted our buying team," said Robertson on a call to reporters. "It was just chatter."

Asos, whose offering ranges from its cheaper own-brand stock through to brands including Ted Baker, Cath Kidston, New Look, Karen Millen and Reiss, unveiled annual sales up 27% to £0.98bn.

UK retail sales were up 35% but international sales growth halved to 22% from the 44% enjoyed the previous year as the strength of sterling made its prices less competitive overseas.

Sterling's strength, combined with other factors such as a warehouse fire and investment in its new China business, saw profits down 14% to £46.9m.

The company plans to counteract the strong pound by investing heavily in international pricing, although this will hold back profit growth for the next "couple of years".

Robertson later said that initial pricing investment in Australia had already seen "green shoots" of some recovery, but said this was not surprising after cutting prices.

The company plans to launch a full "zonal pricing solution" in four key territories before the peak Christmas trading season.

This will initially allow it to offer locally competitive pricing and promotional activity in certain markets, and to sell certain brands which are otherwise restricted in these territories.

"Australia is planned to go pre-peak [season]. I suppose France and Germany will be closely following," Robertson said.