|Bid||3,451.00 x 0|
|Ask||3,462.00 x 0|
|Day's range||3,257.00 - 3,522.00|
|52-week range||2,033.00 - 6,152.00|
|Beta (3Y monthly)||1.52|
|PE ratio (TTM)||47.68|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
Asos, which is popular among twentysomethings, managed to increase sales by 13% in the year to 31 August. Photograph: Suzanne Plunkett/ReutersProfits at Asos have plunged by nearly 70% in a tumultuous year during which the former stock market darling’s shares plummeted and the online fashion retailer grappled with IT chaos at its overseas warehouses.Sales rose by 13% to £2.7bn in the year to 31 August, but pretax profits fell by 68% to £33.1m. Major IT problems at Asos’s warehouses, which hurt sales and drove up costs, forced the retailer to issue two profit warnings in the past year. It did not provide a forecast for the current year.The 19-year-old company, which caters for fashion-hungry twentysomethings, hit a high point in November 2017 when it overtook Marks & Spencer with a market value of £4.89bn.For years, the online fashion trailblazer seemed unstoppable and its shares reached a peak of £77.30 in March 2018. Since then, they have lost more than half their value, as Asos was dogged by the warehouse issues and admitted it was not immune to the consumer slowdown.The company said it had been wrongfooted by the extent of discounting undertaken by rivals, especially during the Black Friday shopping season last year, when its 20% off promotions failed to match competitors.Meanwhile, its online rival Boohoo has flourished, with a near-40% surge in quarterly sales. Boohoo’s brands include PrettyLittleThing, Nasty Gal and MissPap, and it recently bought the online businesses of Karen Millen and Coast out of administration.Asos’s sales in the UK, which rose by 15%, were unaffected by the problems in Germany and the US. The company’s warehouse in Berlin struggled with a switch from processing orders manually to automated systems, while its new Atlanta site, opened in February, failed to keep up with customer orders and ran out of stock.Sales in the EU rose by 12% over the year while US sales grew by 9%. More than 60% of the company’s revenue comes from outside the UK.Nick Beighton, the chief executive, said: “Clearly last year did not go as well as we planned. With hindsight, we were over ambitious in tackling two international warehouses at the same time and our internal capabilities and bandwidth hadn’t kept pace with the changing scale of our business.”Those problems have now been fixed, he said. “Whilst there remains lots of work to be done to get the business back on track, we are now in a more positive position to start the new financial year,” Beighton said.Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDeskHis remarks helped bring the share price up by nearly 22% to £31.17 on Wednesday, its biggest one-day rise since January 2004.Beighton said Asos was prepared for a better Black Friday than last year. “It’s becoming a very key moment for customers. I don’t think there will be any waning in customers’ appetite for Black Friday,” he said.Sofie Willmott, the lead retail analyst at GlobalData, said the company had its work cut out, but added: “Asos is clearly willing to adapt to survive, unlike some of its multichannel competitors that have been slow to respond to changes in consumer needs and shopping habits.”
* European stocks retreat after hitting one-year highs on Tuesday * STOXX 600 -0.3%, FTSE 100 -0.2% * Tug of war between exporters and domestic stocks as last-ditch Brexit talks continue * Roche gains, ASML down after results Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Reach her on Messenger to share your thoughts on market moves: firstname.lastname@example.org YOU DON'T WANT TO FIND YOURSELF UNDEREXPOSED TO ANY BREXIT DEAL, DO YOU? "While headline risks remain elevated on both fronts (Brexit and trade), we think it is prudent to cut some of our defensive hedges and add to UK domestics," they said.
* European stocks retreat after hitting one-year highs on Tuesday * Investors braced for Brexit news * Roche rallies, ASML falls after results Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. Reach her on Messenger to share your thoughts on market moves: email@example.com OPENING SNAPSHOT: EUROPE ON BACKFOOT AMID BREXIT JITTERS (0744 GMT) European shares have opened on the backfoot which may not be surprising given the euro-zone benchmark hit more than one-year highs yesterday after the late rally fuelled by fresh Brexit optimism. There are some signs of resilience though as Roche helps lift healthcare stocks and exporters on London's blue chips benefit from the weaker sterling.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Joice Alves. European stocks may take a bit of a breather after their late afternoon flurry yesterday amid hopes of a Brexit deal, although markets are likely to be volatile as investors brace for headlines on how negotiations are faring. London stock futures are down 0.2%, dragged lower by the positive sterling, although any positive news on Brexit is likely to push up domestic stocks from housebuilders to banks and may offset gains among exporters.
* Hurt by botched warehouse revamps in Germany and U.S. LONDON, Oct 16 (Reuters) - British online fashion retailer ASOS said problems with warehouses in the United States and Germany, which were behind a 68% slump in annual profit, were largely behind it, sending its shares sharply higher on Wednesday. Shares in the firm, which sells fashion aimed at twentysomethings, were up 18% at 0932 GMT, paring year-on-year losses to 40%, after it reported "substantial progress" in addressing its operational issues.
British online fashion retailer ASOS said problems with warehouses in the United States and Germany, which were behind a 68% slump in annual profit, were largely behind it, sending its shares sharply higher on Wednesday. Shares in the firm, which sells fashion aimed at twenty somethings, were up 18% at 0932 GMT, paring year-on-year losses to 40%, after it reported "substantial progress" in addressing its operational issues. ASOS is working through a major overhaul of its warehouse and technology capabilities, moving from a UK-focused to a global model so it can better access growth opportunities.
ASOS, which sells fashion aimed at twentysomethings, is tapping experienced hands to revive its business after the company in July issued its second profit warning since December. Two existing directors, Hilary Riva and Rita Clifton, will leave in April 2020 after their six-year tenures.
(Bloomberg Opinion) -- Forever 21 Inc. has learned the hard way that the allegiance of teen shoppers is anything but everlasting.The fast-fashion retailer filed for bankruptcy late Sunday, saying it has obtained $350 million in financing to help it stay afloat. The company said it plans to close most of its Asian and European stores in order to focus on its core business in North America.The bankruptcy is, of course, another signal of the punishing pressures of the broader “retail apocalypse,” in which the rise of e-commerce is siphoning away shoppers from brick-and-mortar chains, forcing them to collectively shutter thousands of stores. But Forever 21’s troubles also are an emblem of a new and important dynamic shaping the U.S. apparel market: Fast fashion, once a formidable retail niche, is falling behind.In the first two decades of the 2000s, the trifecta of Forever 21, H&M and Inditex SA’s Zara had punishing impact on mid-priced mall heavyweights such as Gap Inc., Abercrombie & Fitch Co. and American Eagle Outfitters Inc., stealing away the high school and college set by peddling trendier garments and refreshing their merchandise offerings at a much quicker pace. The Great Recession helped support their rise, as it meant shoppers were especially focused on low prices.Now, though, there are clear signs that some shoppers are souring on this model. Forever 21 and others of its ilk have long been go-tos for what is essentially disposable clothing – a trend you’re sure will be fleeting, an outfit you don’t want to be seen in more than once on Instagram, etc. But just as sustainability concerns upended the food and beauty industries years ago, they are starting to factor more into clothing purchases. And it could contribute to a backlash to what was essentially a years-long binge on cheap polyester.To the extent that many shoppers are still embracing fast fashion, there are now many more options for them to scratch their itch for of-the-moment clothing than when Forever 21 was gathering steam. Chains such as Gap, Old Navy and Urban Outfitters Inc. have sped up their supply chains to be more reactive to new trends. Plus, many chains including Ann Taylor, Express and Bloomingdale’s are now joining upstart Rent The Runway in the clothing rental business.Digital-centric players such as Boohoo, Fashion Nova and Asos have given them fresh options, and low-priced, U.K.-based brick-and-mortar chain Primark is starting to open U.S. stores. On top of that, digitally-enabled secondhand selling is gaining traction. The stock market debut of The RealReal Inc. and Foot Locker Inc.’s $100 million investment in sneaker re-seller Goat were signals of the strong expectations of growth for this model. Simply put, there are more options now for having a constantly-refreshing wardrobe that don’t necessarily depend on fast fashion. All of those changes are making it difficult for Forever 21 to stay relevant. In fact, the collective U.S. market share of the Big Three of fast fashion peaked in 2015, according to data from Euromonitor.Of course, Forever 21’s bankruptcy also is a result of other factors, including the pace at which it opened stores and its decision to have so many of them in enclosed malls. But the chain’s troubles signal a new era of opportunity for capturing the dollars of Generation Z and millennial shoppers. Its struggling neighbors at the mall should take note.–Andrea Felsted contributed the “Rental on the Rise” chart. To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Online fashion retailer Zalando has launched a pilot to deliver orders placed by customers in Paris on the website of Adidas as it extends moves to allow brands to use the logistics network it has built for its own ecommerce business. The pilot is the first time the German firm is delivering goods not ordered on its own site and marks an expansion of its platform strategy under which it charges brands a commission to list on its website rather than selling the products itself. "It is a win-win situation for us," Jan Bartels, Zalando senior vice president for customer fulfillment, told Reuters.
Online fashion retailer Zalando raised its profit guidance on Thursday after a big jump in visits to its website, with the company citing efforts to provide a best-in-class fashion experience and more speedy delivery options. The Zalando news helped to lift other fashion stocks, such as H&M, while Next and Puma extended gains recorded on Wednesday when both reported strong results. Zalando, Europe's biggest online-only fashion retailer, has been trying to counter a squeeze on profitability as it has invested heavily in logistics to speed delivery.