Asos will be a post-lockdown winner, says AJ Bell12 Apr 2021 06:10
Asos (ASC) benefited from the switch to online shopping in the pandemic, but AJ Bell says the company stands to benefit from the reopening of the economy too as people venture outside their homes again.
Interim results published on Thursday showed revenue rose 25% to £2bn in the half year, reflecting a 25% increase in retail sales, with growth being particularly strong in the UK.
Analyst Danni Hewson said fears that the online fashion retailer would be hit by its younger customers feeling the Covid-19 pinch were unfounded.
‘Reopening should offer some benefit as people refresh their wardrobes to get out and do stuff again but we will also see some demand filter back to shops,’ said Hewson.
‘Though, like other trends accelerated by the pandemic, a greater proportion of people buying clothes online is something which looks to be here to stay.’
After slipping on the day of the results, the shares slumped again on Friday, closing down 4.1%, or 230p, at £53.60