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Recovery is on track and lots of shorts to close are good ingredients for a speedy share price reversal.
I couldn’t short st 30 pence.
This was always going to take time but there now looks to be limited downside so will be back in the Market buying again, once the SP settles in a few days.
Nice to see a positive open
You either hold short positions... or didnt buy yesterday... Its our day, we dont get many. Go swivel for 24 hours.
Exactly. I don't personally just expect it to rerate overnight. I think it will be on the turn at some point this year and gradually head up as the news flow improves.
Both cannot get traction and profitability in a very challenging discounted environment.
The days of ASC and BOO being market leaders in the discount value sector has evaporated
Asos will never get the crown back, overtaken by the likes of Next, H&M and a number of European competitors
Another update to reinforce the message. 2025 will see the SP rerate. I'm holding and continue to feel positive. Patience is key here and we need to stop fretting about the SP for 12 months or so. Recovery is underway and going to plan. IMO. ATB
Maybe, but they have stock to that narrative so far and they have been accurate with what they have said so if FY25 is anything close to what they are expecting then it's very much happy days from these levels. Test and react looks pretty good so far too. 58% margin. That needs to be rolled out asap lol.
That is the first positive headline I
Https://www.cityam.com/asos-ahead-of-schedule-turning-stock-into-cash-as-revenue-drops-18-per-cent/
I think the company is turning into ocado - delivery of jam scheduled for tomorrow!
T01
He probably learnt a great deal from his time at Far and Matches which no doubt he will apply at ASC. Failure is part of the learning curve, after all
No exactly, the results/numbers aren't great but we knew that and the fact they are now on the home stretch with future guidance being significantly better should keep this from doing anything daft. We aren't buying it for todays numbers that's for sure.
Agree but also he does have a couple of stinkers on his CV alongside Sainos and Amazon. Farfetch and Matches aren’t great endorsement
A real mix of opinions on the update so far, it seems.
IMO, you can toss a coin as to whether we see a new year low print, or a retest of the 380's level today...basically I have absolutely no idea how the market is going to take this news!
Some positives, as others have cited from the RNS, but this one is not out of the woods by a long shot either, to my mind.
As I have said before, I want to see the CEO buying big here, now he is able to. Nothing better to back up the warm words of a CEO than cold, hard cash from his own pocket.
Ultimately, if we start to see a proper unwinding of short interest here in the days ahead, that will probably be the greatest sign that the bulls are back in control. Fingers crossed to this end.
Impressed and relieved with this update.
Also think the naming of former Sainsbury’s and Amazon exec Dave Murray as new chief financial officer is fantastic.
Happy.
Ok update, as expected really apart from the stock reduction which is going really well.
No fireworks here just yet but importantly, they are very confident in the guidance and outlook with growth returning here in June-August onwards and FY25 'substantially increased margins' and pre Covid EBITDA margin maintained with a sustainably growing profitable business.
I'm happy. Roll on FY25 :)
Gross margins dropping is no real surprise when ASC is in the middle of clearing historical overstocking. The heavy discounts kill margins and that is why the stock reduction programme is so important. That it is ahead of plan is a positive. When legacy stock has cleared gross margin will improve.
ASC have an established business but the market frets over liquidity concerns ie cash flow, cash balance and debt concerns, the three great fears of any equity holder. Sort out the cash, reduce the debt at all costs and cut out the fat. It can be done here. It's heading in the right direction and the market should endorse that progress
I thoroughly expect the shares to nudge the 400p level imminently now and break through within the next few days. No reason now to hold back the shares. And, there's the increased chance of Frasers now making an opportunistic bid before the recovery becomes too obvious.
Not much the results the market wasn't aware of but equally nothing big positive news that would act as a catalyst for a re-rate. Will see how the market takes this. There are some worrying trends though - gross margins dropping significantly again and active customers back to pretty much 2019 levels - they had over 25m at the peak of pandemic in 2022 and now down to 21m - no panic mode yet but perhaps some signs that ASOS is losing its appeal?
This is the one thing that is a surprise and will go down very well. Every negative article in the lead up mentioned stock reduction being ‘to plan’. It’s well head of it and will enable the rest of the more dynamic business plan to be delivered. Great great update
Add in the 3.1% inflation printed this morning should make for a decent day. I’m happy with the update