🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UPDATE 2-ASOS says to beat profit hopes, trading buoyant

Published 04/27/2009, 03:27 AM
Updated 04/27/2009, 03:32 AM
ASOS
-

* Full-year sales up 104 percent to 165 million pounds

* Four weeks to April 24 sales up 80 percent

* Expects another year of strong growth

* Shares up 2 percent at 0711 GMT (Adds detail throughout, shares)

By James Davey

LONDON, April 27 (Reuters) - ASOS Plc, the British internet fashion retailer, on Monday forecast full-year profit ahead of market expectations and said recent trading remained buoyant.

"We expect our profit before tax (for the year to March 31 2009) to be slightly ahead of market expectations," said Chief Executive Nick Robertson.

Prior to Monday's update analysts were forecasting a consensus pretax profit of about 13.8 million pounds ($20.12 million) for the year, up from 8.3 million pounds in the previous year.

Shares in ASOS, which have increased in value by a third in the last three months, were up 7.75 pence, or 2.1 percent, at 371 pence, at 0711 GMT, valuing the business at 270 million pounds.

The group, whose ASOS.com website targets internet-savvy 18 to 34 year olds looking to emulate the designer looks of celebrities but at a fraction of the price, said full-year sales increased 104 percent to 165 million pounds.

Sales were up 80 percent for the four weeks to April 24, with international sales up 173 percent. "We are not immune to the prevailing economic conditions, however ... younger fashion is proving more resilient, internet shopping continues to gain in popularity and our international sales are being bolstered by the weak pound," said Robertson.

He said the group was being more conservative in its planning for 2009/10 but believed the outlook was still very positive, and anticipated another year of strong growth.

Many UK retailers have struggled over the last year as consumers have cut back on spending amid sliding house prices, soaring unemployment and fears of a deep recession.

But ASOS has been bucking this trend, benefiting from a young core customer base and the migration of retail spending from the high street to the Internet. (Editing by Rupert Winchester)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.