ASOS Share Price (ASC)

I suspect behind the dreary share price and short activity, this is ticking along quite nicely. Judging the company against it's old model, may allow for some surprise come Oct/Nov. Of course, England winning the Euros and a summer of hot weather might help....

Fashion and furniture shopping help UK retail sales rebound in May

(Adds par 8 and final 6 pars)

By Anna Wise, PA Business Reporter

A rebound in the number of shoppers flocking to fashion and furniture stores helped boost retail sales last month, after wet weather dampened spending in April, according to new official figures.

The quantity of items bought rose by 2.9% in May, following a fall of 1.8% in April, the Office for National Statistics said. April’s data has been revised up from a previous estimate of a 2.3% decrease.

The figure has beaten forecasts, with some economists expecting sales to rise by a softer 1.6% last month.

The volume of sales rose across most sectors last month, compared with April, when poor weather reduced the number of people shopping.

Clothing retailers, furniture, footwear, sports equipment, games and toy stores had a strong month, thanks to more visitors, warmer weather and the impact of promotions.

Florists also helped drive a 3.5% increase in total non-food store sales in May, which includes department stores and homeware shops.

This was the biggest monthly rise in three years, the ONS said.

Online clothes shopping also soared by nearly a tenth in May, while the total amount spent online across all sectors rose by 5.4%.

Meanwhile, watches and jewellery retailers and second-hand goods stores were among those seeing a slight fall in spending compared with the previous month.

Experts said that a summer of sporting events is likely to prompt more spending, which could further boost retailers.

“The numerous bank holidays in May provided retailers with a much-needed sales boost, according to the latest figures from the ONS,” said Silvia Rindone, EY’s UK and Ireland retail lead.

“A summer packed with high-profile sporting events such as Uefa Euro 2024 and the Paris Olympics, coupled with better weather and the possibility of political changes, could well be the catalyst for a resurgence in consumer confidence.

“While these upcoming events are beyond retailers’ control, they present a golden opportunity to drive sales.”

Oliver Vernon-Harcourt, head of retail at Deloitte, said the latest figures suggest that “recessionary behaviours are easing”, with more consumers “releasing their purse strings and spending on discretionary items such as clothing and furniture”.

The UK economy dipped into a recession at the end of last year, but returned to growth over the start of 2024.

*Gains were led by clothing and footwear retailers, furniture stores, and sports equipment, games and toys stores, amid improved footfall, better weather, and the impact of promotions. Also, sales at non-store retailers, which are predominantly online retailers, rose by 5.9%, the largest monthly increase and index level since April 2022.*

https://tradingeconomics.com/united-kingdom/retail-sales

Https://www.lse.co.uk/news/top-news-uk-retail-sales-top-consensus-with-29-monthly-rise-in-may-m0xknw19zl8qokr.html

*It said underlying earnings in FY24-25 are set to be "significantly" higher than the previous two years as it cuts costs and slashes stock levels. Chief executive Jose Antonio Ramos Calamonte said 2023-24 "is about taking the necessary action to get us to that path".*

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