|Bid||2,138.00 x 0|
|Ask||2,141.00 x 0|
|Day's range||2,033.00 - 2,179.00|
|52-week range||2,033.00 - 6,298.00|
|Beta (3Y monthly)||1.61|
|PE ratio (TTM)||29.57|
|Earnings date||16 Oct 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||4,263.19|
A daily overview of the top business, market, and economic stories you should be watching today in the UK and abroad.
Sterling jumped to a day's high against the dollar after the figures showed monthly retail sales volumes jumped 1.0%, well above all forecasts in a Reuters poll of economists that had pointed to a 0.3% drop. The Office for National Statistics (ONS) said sales were up by 3.8% compared with June 2018, again stronger than all forecasts. Many economists think Britain's economy is in danger of shrinking in the second quarter, a hangover from the stockpiling boom that took place ahead of the original Brexit deadline in March.
British online fashion retailer ASOS warned on profits for the third time since December, saying problems ramping up warehouses in the United States and Germany had restricted product availability, hitting sales and raising costs. "The major overhaul of our infrastructure has been bumpier and taken a lot longer than we originally anticipated," Chief Executive Nick Beighton said on a conference call with analysts. Last year, H&M, the world's second-biggest fashion retailer, experienced glitches as it worked to speed up its logistics systems.
Asos expects to make profits of £30m to £35m this year, far below City forecasts of £55m. Photograph: Suzanne Plunkett/ReutersAsos suffered a fresh share price collapse after the online fashion retailer blamed IT chaos in its overseas warehouses for a second profits warning in seven months.Analysts said investors were losing confidence in the former stock market star after a disastrous IT upgrade in Germany and stock problems in the US. The company has lost 60% of its value after a profit alert in December and another update in March when it first confessed to teething problems in America.Nick Beighton, the Asos chief executive, said the company now expected to make profits of £30m to £35m this year, far below City forecasts of £55m and only a third of the £102m it reported in 2018.Beighton said: “The major overhaul of our infrastructure has been bumpier and taken a lot longer than we originally anticipated. We acknowledge that this is a failure in execution.” He insisted the problems would be resolved by the end of September.The profit warning sent the shares plunging by more than 20% initially but they later recovered to £22.79, still down by almost 17%. In March, the shares were changing hands for £77.30.Asos said overall sales were up 12% in the four months to 30 June. However, growth in the US and EU was lower than expected, at 12% and 5% respectively, due to the operational failures. Sales in the UK – which are handled by a warehouse in Barnsley, South Yorkshire, that was unaffected – were stronger, up 16%.Sign up to the dailyBusinessToday email or follow GuardianBusinesson Twitter at @BusinessDeskThe problems were different in Germany and the US: its two-year old warehouse in Berlin was affected by the switch from processing orders manually to new automated systems while its new Atlanta site – which opened in February – had stock shortages as clothing brands struggled to get their products into the country fast enough.“These issues have restricted product choice and availability for our customers in the US and Europe which has a corresponding impact on sales growth in these regions as well as profitability in the form of higher transitional costs to fix the issue,” said Beighton.Liberum analyst Wayne Brown described it as “another significant profits warning” and said management had “serious questions” to answer: “The operational issues in Europe and the US signal to us a lack of enough senior leaders in the business with the adequate skill-set to undertake the complex capital projects.”Brown said £700m had been invested its Asos’s warehouses over the last four years and although sales had doubled, profits were going backwards. “We question where £1.5bn of additional sales have gone considering profits are now £20m lower than in 2015.”Asos insists its current problems are self-inflicted and short-term and that the future remains bright for the retailer as fashion sales move online. “None of these (issues) change the opportunity ahead for us which remains huge,” said Beighton. “I’m clear this is not a demand issue.”Independent retail analyst Nick Bubb said there was a “growing management credibility problem” at the company but suggested that investors would see how Beighton handled the key Black Friday online sales event before calling for his head.
Opponents of a hard Brexit in parliament may try again to assert their influence today by backing a bill that would require the assembly to get regular updates on the situation in Northern Ireland - a device whose main goal is to stop any future PM from suspending parliament to usher in a no-deal Brexit. If the vote does go ahead today, the big question is whether any cabinet members - among them finance minister Philip Hammond - will join that effort. Before that, the UK's official forecasting body is due to give a series of predictions on the UK economy, including what would happen to it in the event of a no-deal Brexit: according to the Times, the body will conclude that such an outcome would take a massive three percent chunk out of GDP.
(Bloomberg) -- Asos Plc plunged after the online fashion retailer warned that earnings will slump this year, putting pressure on Chief Executive Officer Nick Beighton as he tries to fix distribution issues and prop up a falling stock price.Profit before tax may fall as much as 71%, Asos forecast Thursday. Shifting to new technology at U.S. and European warehouses is taking longer than expected, affecting stock availability, according to the company, known for products such as leopard-print bodysuits. The shares fell as much as 22%, wiping 513 million pounds ($640 million) off the company’s market value.latest warning shows the company is still struggling to come to grips with operational issues, after revising its sales outlook downward in December and issuing a further downbeat sales update in March. The shares have lost 63% of their value over the past 12 months, though the company tried to reassure investors with a more positive report for its first half in April.The company has been struggling to keep up with other online fashion chains targeting young shoppers, especially Boohoo Group Plc, which has linked its marketing to reality TV series “Love Island.”The issues “have been self-inflicted,” wrote Greg Lawless, an analyst at Shore Capital.The shares traded 16% lower at 10:23 a.m. in London.The company said growth in the U.S. and Europe was held back by problems at new warehouses in Berlin, where it’s ramping up automation, and in Atlanta, where it has struggled to build up stock.“We are clear on the root causes of the operational challenges we have had, are making progress on resolving them, and now expect to complete these projects by the end of September,” Beighton said in the statement.The CEO has been in his position since 2015, and Asos shares had doubled in value as of last year. The recent slump has erased most of those gains.Pretax profit is now expected to be in a range of 30 million pounds to 35 million pounds. Analysts had a consensus estimate of 55.9 million pounds.Berenberg analysts said it’s hard to understand why the problems were not known sooner, given that Asos has live data on sales and other metrics.Asos “must now provide clear guidance on when operational issues will end and also provide clear evidence that these issues are the primary cause of weakness,” they said in a note.(Updates with market value in second paragraph. An earlier version of this story corrected the reference to previous profit guidance in the fifth paragraph.)\--With assistance from Lisa Pham.To contact the reporter on this story: Eric Pfanner in London at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, Thomas MulierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
British online fashion retailer ASOS warned on profits for the third time since December, saying problems ramping up warehouses in the United States and Germany had restricted product availability, hitting sales and raising costs.
In February 2019, ASOS Plc (LON:ASC) released its earnings update. Generally, analyst forecasts appear to be bearish...
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! In 2015 Nick Beighton was appointed CEO of ASOS Plc (LON:ASC). This report will, first, ex...
JD Sports and ASOS warehouses risk becoming like "dark satanic mills" after figures showed ambulance call-outs to their sites have risen steeply. JD Sports saw 40 call-outs to its Rochdale site last year, while ASOS's unit in Barnsley was visited 45 times - a rate of almost one every week. In the past three years, ambulances have been dispatched to JD Sports's Greater Manchester premises 117 times, and 148 times to the ASOS warehouse in South Yorkshire.
Every investor in ASOS Plc (LON:ASC) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Wa...
One of Britain's biggest landowners Anders Holch Povlsen confirmed the tragic loss of three of his children in the Sri Lanka blasts.