Asos appoints Helen Ashton as Finance Director: Asos has raided the ranks of a U.K. debt management company to find a Finance Director, ending a six-month search to replace Nick Beighton who was promoted in autumn to help revive the online retailer’s fortunes following three profit warnings.
Opened at 4169. First target around the 3760 area.
2 Apr '15
Asos faces margin pressure as online fashion becomes less forgiving: It was originally “As Seen On Screen”. But in the past year Asos could have stood for “Airborne Stock Only Sometimes”. Three profit warnings have buffeted a share price that once seemed to have adopted “onwards and upwards” as its motto. Asos is also relying on an increase in volumes of 15-20% this year to enable it to strike better deals all around. Even so, the continuing need to invest in distribution in continental Europe and the U.S. will mean that the improvement will probably be “stop, start” rather than unbroken progress. On the high street websites too, brands are improving their own online businesses. Asos says fashion brands selling through third parties as well as their own outlets is nothing new — just think department stores. That does not quite work as an argument for investing in the group. First, a wider choice of third-party sites, such as Next’s Labels operation, is becoming available. Second, once you have chosen a potential purchase on a third-party site, it is hardly any effort to click on the branded site to see if it is available more cheaply or even more desirably there. Third, the U.K. department store model exemplified by Debenhams and House of Fraser has hardly been a beacon of consistent investment excellence. So even as Asos can claim that profit warnings are last year’s fad, it is operating in a tougher environment. At Wednesday’s close of £37.35 it is trading on a 2015 p/e ratios of about 80 times. This looks far racier — and far less appealing — than the outfits it sells.
1 Apr '15
this was 10p!!
30 Mar '15
I expect this share price to boom soon, allot of consolidation in this arena over next twelve months.
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