British online retailer, Asos, has reported a 22 per cent fall in first half profit as heavy investments in warehousing and IT systems continue to impact on the business.

Asos recorded a pretax profit of £20.1 million in the six months to February 28, down from £25.7 million in the same period last year.

Retail sales lifted in the UK by 34 per cent in the six months to February 28 to £182 million, up from 32 per cent. International sales rose 35 per cent to £243 million.

“This increased pace of investment has reduced our profitability in the period, but will deliver significantly increased capacity as well as efficiencies in the longer term,” Nick Robertson, Asos CEO, said.

“Asos is not and has never been about the short term; the scale of the global opportunity remains as exciting as ever and we are investing for the many opportunities ahead.”

The online fashion giant will focus on its international expansion this year including the US and China.

“Our £68 million investment during the current year will more than double the sales capacity with greatly enhanced efficiencies at our UK warehouse, a new Eurohub in Berlin, an expanded facility in Ohio in the US, and a new warehouse in Shanghai.”

Asos launched a dedicated Australian site in September 2011, which has since has grown to be Asos’ third largest market outside its home of the UK.

It launched an Australian mobile site in September 2012, as well as a dedicated Australian office in Sydney.