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Amazon are massively struggling with their young fashion offer. If they really want to dominate this sector then they have to totally change the online experience. Amazon Clothing is not cool and under current guise never will be, it's considered to be in the same market as the Asda, Tescos, Sainsburys etc , to change the mindset now is a herculean task. Bolting on an existing Brand somehow is the way forward but without detracting from that Brands appeal or landing page, eg Asos, Boo Hoo, Topshop/Topman, are where its at but this is of course is provided they even want to get involved in the fast fashion sector.
Why did they spend so much on Whole Foods? Easiest thing to copy is a retailer?
Amazon don’t fit the profile for buying ASOS. Amazon will sell through a third party but not let that third party know who the buyer is thus keeping the data to themselves. They then, if the items are lucrative enough cut out the third party and sell under a different brand name. Countless firms have been edged out of business like this. They don’t need to spend millions to buy out ASOS. It ain’t gunna happen. Bezos is one smart guy.
I look at a position of Net Assets after Debt.
Yes they have a revolving credit but cash & assets put them cash positive now for valuation purposes.
Either way they are still a possible target for the likes of Amazon which was the theme of the post.
I repeat. ASOS does have debt. They also have a 350 million revolving credit facility in place. Do not believe anything you read on motley fool. Always check it out.ASOS balance sheet is freely available to all
I repeat. Asos has debt. They have a revolving 350 credit facility till 2023. Don’t believe all you read on motley fool. You need to re@d the balance sheet which is freely available to all.
“ ASOS has no such problems, and I think that’s reflected in the ASOS share price. There was modest net debt on the books back in August 2019, of £90.5m. But that’s turned into net cash of £407.5m this year. The firm reported rises in sales around the world: up 18% in the UK, 22% in the EU, 18% for the USA, with the rest of the world seeing an 18% rise too.”
The ASOS share price: why I’d buy for an extended Covid lockdown
https://www.fool.co.uk/investing/2020/10/14/the-asos-share-price-why-id-buy-for-an-extended-covid-lockdown/
The latest results state they went from 90.5m debt in 2019 to 407.5m cash positive 2020
The latest results state they went from 90.5m debt in 2019 to 407.5m cash positive 2020
Their latest results state they went from 90.5m debt in 2019 to 407.5m cash positive 2020
Kitty kitty. Asos does have debt. Look at their financials.
Should also add with the dollar being strong against the pound it would be a bargain!
"Amazon.com is set to unveil its third quarter earnings after the market close on October 29 – one of several tech titans reporting their results that day. After a spectacular earnings beat in the second quarter, the online retail behemoth could be about to treat investors with another strong set of results as the ongoing pandemic has largely kept people away from high streets and malls even as most stores have reopened.
Boost from online shift
The spring lockdowns around the world were a boon for online businesses and even more so for established brands such as Amazon. Whilst the lockdown effect is likely to have subsided in the months after May, footfall in shopping districts is nowhere near pre-pandemic levels and social distancing has only accelerated a trend that had started long before COVID-19 struck the world."
ASOS is now an established leading online fashion retailer with £3.26B revenue, cash positive with no debt & a Market Cap of £4.6B+ with global distribution.
Amazon bought Whole Foods for $13.7B to get into groceries, even though they could have done it themselves.
ASOS are on Amazon & are more relevant to 20 somethings globally vs Amazon Wardrobe.
Amazon has $49.3B cash & a Market Cap of $1.61T
ASOS would be a perfect fit for Amazon & easily affordable ...
Could it happen? if so what would Amazon pay for ASOS to dominate online fashion?
Amazon needs to head of the Chinese threat of shein.com