ASOS plans new Georgia outpost to capture US growth

British online fashion and beauty store ASOS hopes to have a new North American e-commerce fulfilment centre up and running before the end of next year as it continues to focus on overseas growth.

The AIM-listed giant said it would initially invest approximately $40m in fitting out the warehouse to enable further expansion at the appropriate time.

This fulfilment centre is expected to significantly enhance ASOS' US customer proposition providing more cost effective, faster and more flexible delivery options.

Chief executive Nick Beighton said the agreement was "a major step forward" in the US and "demonstrates the opportunity we believe lies ahead in this key market".

He pointed to a US business that delivered 39% constant currency growth in the first six months of the current financial year following sales of £179m in the year ended August 2016.

"Our US fulfilment centre will enable us to significantly develop our proposition for our 20-something US customers supporting our continued growth and future ambitions."

The company's shares were down -0.12% to 5,995.00 by 12:19 BST