Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
Whoami, here’s hoping. An article I read yesterday suggested boohoo and asos should benefit so fingers crossed. We’ll have a better idea in the coming days what sort of an interest there was in the website during December through data on the similarweb website. Definitely a mixed bag in reporting at the moment with clothing retailers, but let’s hope the weather during December turned the table in our favour.
Right back at you SJ. Happy with my holding and looking forward to the £15 party :) Meeting scallop if we win for a beer and you’re welcome to join. Been waiting for two years now so hopefully will live to see the day! Got enough for my comfort levels and would consider adding further, but will prob do it when we’ve turned the corner more. If for example the company is showing signs of reversing its fortunes and the updates are better, I’d happily pay £5, £6 because we all know what happens when she goes on a bull run. Happy with my holding at these levels so am going to take a different tact if I’m to add anymore so I don’t get even deeper.
Not a huge change. It’s not as though asos has lost customers in its droves and that is key. Of course orders have to be profitable and it’s a difficult period to navigate but if they can get costs under control, tighten inventory further and reduce debt, then we are off to the races. Retaining good customers and maintaining relevance exg .website visits can’t be overlooked imo. Too many people are saying asos is no longer relevant, shein will wipe us out etc etc. I’d be concerned if traffic to the website dwindled fast, and it isn’t, so imo there’s a lot of tweaks that can be made to get us back on a winning path. We certainly have a lot of customers and
are spending more on advertising again so hopefully customer volumes will only start to move one way. A lot to get under control I know, but if they get it right then we’ll be more than rewarded imo.
Similar web is the one I use mate:
https://www.similarweb.com/website/asos.com/
Gives you good data, is easy to understand, shows you trends, ranks, comparisons to peers etc. Been keeping an eye out for Decembers data to update here, but it’s not live yet. Was good reading for November. I know this doesn’t necessarily translate into sales/profits, because of course there are many factors that impact, but it’s a great indication of how popular asos remains imo.
Tom, he owns a 10% chunk of Zalando too. Said it for a long time: If there were insurmountable issues at ASOS, most major holders (if not all) would have considerably reduced their holding. What have most done instead? Increased. It’s the macro picture here along with poor management during covid (some would say before) which has caused the issues. The number of web site hits each month tells me that ASOS is very much still relevant, despite claims by some media, that it is a dead donkey.
Weird. Had an old page open so didn’t see your correction! Thought I was going mad then. Good luck to you mate. Know we are both holding for £15+. Will we get it that’s the question? I’m confident we will (I think).
Not reading what I want to at the moment! Views from so called experts. Not that they mean anything of course. Interesting how asos and boohoo are both seen a being losers on the spectrum in 2024 but I bet if we read articles after the Covid boom they would have been nothing but positive.
Https://www.theguardian.com/business/2024/jan/02/uk-grocery-inflation-food-price-rises-brexit-costs
Just this article stating : “Hard-pressed consumers have also been cutting back on buying new clothes to prioritise spending on travel, entertainment and trips to the pub over the past year, according to the latest data from Barclays.” &
“Dickinson said non-food products had a challenging December with price inflation rising to 3.1% from 2.5% in November as prices bounced back after Black Friday discounts and before the January sales.”
The rain has to stop eventually.
I think return fees will be reconsidered in the medium term. For now it looks as though it is off the cards as in the last update they stated it remains an important part of the asos proposition (words of those effects). I think the board is cautious right now is because there has been an unprecedented amount of moving parts for the business, retail and wider economy. Once the dust settles and they have a firmer grip of the balance sheet and the ship is steadied, I think return fees will be the new norm. Also let’s not forget, they have already introduced paid returns after 14 days in some geographies and I think they will build on this in the future and align with the rest of market. I would imagine they have done this to test the reaction of customers and impact on margins. Smart move in my book. Should it be successful, then I’m sure it will be rolled out worldwide. The good news is there is scope for cost savings should they implement this, which in turn will boost profits. In terms of the SP, the CEO has already stated that In FY25 he expects to deliver revenue growth and return EBITDA margin to around pre-COVID levels (c.6%). If that’s achieved then game on. He stated that 2024 is about taking the necessary action to get us to that path so let’s hope stock reduction goes well, more full priced items are sold and partner fulfilments continue to grow. For me I think the real movement will start in H2 2024 if all things go according to plan. A doubling of the sp could easily be achieved solely on continuing falling inflation, a decrease in interest rates and improved consumer sentiment. If 2025 starts well then that’s where longer term higher sp gains will be realised. £15 in 2025 I hope. Would love it before. Just my take and opinion. GLA.
Even if they don’t, this week December website visits should be updated and will hopefully get more online retail data. Would be nice to see website data steady. We are building partner fulfill numbers and our own brand designs remain front and centre which should have higher profit margins. No sign of a topshop sale which is good imo. Shein were in the press as being interested not so long ago and the fact morning has materialised means either the price wasn’t right or the CEO believes this is important for our future imo.
Https://www.ig.com/uk/news-and-trade-ideas/uk-christmas-retail-spending-mixed-231228
We’ll soon find out.