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Hope so SJ. Was just looking at Zalando’s sp. It’s also in the doldrums but it’s a good reminder that while there have been a lot of company specific issues, online clothing operators as a whole have been impacted by macro conditions. When the consumer picture turns I feel we’ll easily double from here and add in the company specific improvements we’ll hopefully see, we should get our £15-£20. AIMHO. GLA.
I mentioned yesterday £3.48 would act as support. Did exactly that, knowbodyyouknow bought, and I sat on my hands! Well done :) Truth is if I would have had free cash I would have placed an order at exactly that price as knew it would bounce. Great to see us touching £3.70 again. Onwards and upwards hopefully towards results. I do think Mr Barker’s timing is meaningful. We are turning the corner or something is afoot imo. Nothing beats a bit of positive thought! :-)
Stranger things have happened. I would love to see asos quit the uk stock market and list overseas. As much as I hate to say it being British, it’s the only way we’ll see fair value.
Shorts have been late to exit previously here. You can see how the sp has risen from the ashes in years gone by, with shorts forced to close at a much higher values. This will happen again imo. It’s always darkest before the dawn and everything is currently against asos, until suddenly it isn’t. There are many catalysts ahead with the strongest of headwinds we’ve ever seen likely to dissipate. Poor stock management is being rectified, costs are being reigned in and margins will improve. It may be slow progress, but so long as we are heading in the right direction, we’ll reap the rewards sooner or later imo.
Here was the outlook provided in the annual report and accounts on 22/11/23:
• Sales decline of 5 to 15%, with P4 FY23 trends (i.e., high double-digit declines) continuing through the first half of FY24 and a return to growth in the final quarter of FY24.
• Adjusted EBITDA positive.
• Stock back to pre-COVID levels (c. £600m as previously communicated).
• Capex of c.£130m.
• Positive cash generation, reducing our net debt position.
It’s a fairly wide net. I don’t see wonderful news on the horizon around performance, however based on the above - even with poor sales continuing - I think we will be inside guidelines. The results don’t need to be fantastic but they do need to show progress against the above KPI’s. Nothing there concerns me. They’ve set fairly low expectations Imo.
Wouldn’t be surprised to see some large buys this afternoon, but interesting how the large recent purchases from Camelot haven’t helped support or even drive the share price forward. A leak of news unlikely the driving force imo. Such a wide ranging forecast was provided I can’t imagine results being below. Perhaps near the bottom but tbh at this stage, I wouldn’t be surprised if that was largely factored in.
Always good to gain others’ views. Thanks for your thoughts LWHL. For all we know Camelot could be envisaging an external offer and are positioning accordingly. That or they see the macro improving. Either way they see value so it’s a win win.
Nate I think you’re right to think about all potential outcomes. I’ve personally been thinking about all the different scenario's from a takeover point of view. I’ve only considered it from a positive perspective but I wonder with three very large II’s if it puts them in a position to make a low ball offer for the company. As small shareholders they’d only need each others support as the largest shareholders to push through a deal for the remaining shares. Any views would be appreciated? I certainly hope that wouldn’t be the case.
Good article. I’m sure asos will be a target at some point. I believe Camelot feel the same, hence their increase in holding. They’ve always been referred to as the kingmaker and are strengthening their position. Either way, everything looks promising. We just need a decent company report or two and that will cement the bottom of the sp. From there we’ll be certain to move north from either a return to growth or takeover. GLA.
Continued..
it's a strong vote of confidence in ASOS's potential and strategic direction. With the backing of significant investors, ASOS is poised to navigate the challenges and opportunities of the digital retail world, potentially setting new benchmarks for success in the industry. The implications of this investment extend beyond ASOS, offering valuable insights into investor sentiment and strategic trends in the online retail sector at large.
Camelot Capital Partners LLC's increased investment in ASOS PLC signals confidence in the online fashion retailer's future. Discover the strategic implications of this move and the market's positive response to the transaction.
28 Feb 2024 16:01 EST
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Sakchi Khandelwal
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Camelot Capital Partners Bolsters Stake in ASOS, Signaling Confidence in Retail Giant
Camelot Capital Partners Bolsters Stake in ASOS, Signaling Confidence in Retail Giant
In a strategic move that underscores burgeoning confidence in the online retail sector, Camelot Capital Partners LLC, closely associated with Non-Executive Director William Barker, has notably increased its investment in ASOS PLC, a leading London-based online fashion retailer. The purchase of 474,000 shares at 363.82 pence each, amounting to approximately GBP1.7 million, brings Camelot's total holdings in ASOS to an impressive 17.2 million shares. This development not only highlights Camelot's significant stake in the company but also suggests a strong belief in ASOS PLC's future growth potential or strategic value.
Investment Highlights
The transaction, executed on 26 February 2024, marks a pivotal moment for both Camelot Capital Partners LLC and ASOS PLC. With Camelot's increased shareholding, speculation abounds regarding the investment firm's long-term strategy and its implications for ASOS's operational direction. This move also reflects broader trends in the online retail market, where investor confidence seems to be on the rise, possibly driven by innovative business models and technological advancements that promise to redefine shopping experiences globally.
Strategic Implications
Camelot Capital Partners LLC's decision to bolster its stake in ASOS PLC could signal a forthcoming phase of strategic collaborations or initiatives aimed at leveraging ASOS's market position to drive growth and profitability. Given William Barker's role as a Non-Executive Director at ASOS, this investment might also hint at insider confidence in the company's management and future roadmap. Analysts are keenly observing how this increased stake will influence ASOS's strategy, particularly in areas such as market expansion, product diversification, and digital innovation.
Market Response and Future Outlook
The market's response to this significant investment has been largely positive, with ASOS's share price reflecting a cautious optimism among investors about the company's growth trajectory. As the online retail sector continues to evolve, ASOS PLC, bolstered by the support and confidence of major stakeholders like Camelot Capital Partners LLC, is well-positioned to capitalize on emerging opportunities. The industry is closely watching to see how this partnership unfolds and what it means for the competitive landscape of online fashion retailing.
As Camelot Capital Partners LLC deepens its investment in ASOS PLC, the move is more than a mere financial transaction; it's