|Bid||2,730.00 x 0|
|Ask||2,732.00 x 0|
|Day's range||2,718.00 - 2,790.00|
|52-week range||2,033.00 - 6,152.00|
|Beta (3Y monthly)||1.52|
|PE ratio (TTM)||37.50|
|Earnings date||16 Oct 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||4,263.19|
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.
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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.
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.