Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
This part makes you think: “with the global virtual fitting room market now predicted to grow from $4.03 billion in 2022 to $14.87 billion by 2029. “
People talk of crowded marketplaces left right and centre but look at the opportunity. Clothing is a growing commodity so plenty of the pie to go around it we get things right.
Snippets from a new article today:
“Virtual reality fitting rooms
One of the exciting transformations we’re seeing is the creation of virtual reality fitting rooms. This form of blended reality allows shoppers to ‘try on’ clothing, shoes and cosmetics from the comfort of their living rooms using AI and augmented reality (AR) – think Adidas sneakers, ASOS clothing, and Charlotte Tilbury lipstick.
Early adopters Walmart and Macy’s have been more recently joined by luxury brands such as Gucci and Hugo Boss, with the global virtual fitting room market now predicted to grow from $4.03 billion in 2022 to $14.87 billion by 2029.
Visual Search Technology
See something you like, but aren’t sure of the brand? Visual search technology such as ASOS’s Style Match feature allows users to upload an image of a style they’re looking for, and then offer personalised recommendations of similar items to buy. The tool uses machine learning and AI computer vision technology to analyse the image and then share suggestions based on colours, shapes, and patterns.”
Let’s hope we always stay on the front foot and ahead on tech so we always have an innovative edge.
Article from yesterday: Asos PLC, down 1.0% at 385.3p, 12-month range 320.33p-1,015p. The online fashion and cosmetic retailer's shares fall as Barclays cuts its price target to 350p from 445p. The bank maintains its 'equal weight' rating, however.
Long and the short of it is nothing is going to happen here for some time imo unless the Top Shop sale or something akin to it materialises. That or until interest rates fall and/or better than expected results are achieved in 2024.
Medium term I still fancy this achieving £15 again (very much bottom of the range in terms of how the company was performing during its growth period).
Anders (Bestseller), Camelot, Schroders, Mike Ashley. Big players and none have left the nest. If things were perilous we’d have seen II’s selling en masse at some stage down the road and they haven’t. Now they are either delusional or are comfortable/confident of a much better future/rosier outlook. Businesses and people like this are rich for a reason. They probably get their investments right 9 times out of 10. As PI’s we are more often at the other end of the success scale. I’m comfortable to wait based on my own view but am happy to be in their company, especially knowing none have sold and MA has accumulated. ATB.
Anyone heard of them? Changed their price target from £4.09 to £2.40.My view is that one or two decent set of results behind us and forecast of growth and we’ll leave these prices long behind us. In the meantime it’s going to take t/o news or the potential sale of topshop etc to push us on imo.
The turnaround at online retailer ASOS PLC under boss José Antonio Ramos Calamonte is “underappreciated", according to UBS.
It believes the retailer is addressing the “key areas” of underperformance such as basket economics, assortment management, sourcing and inventory management through its 'Driving Change' plan.
“The margin rebuild and profit recovery from this plan are underappreciated, in our view,” it added.
The Swiss bank said data showed lower promotions year-on-year in the second half from a reduction in stock keeping unit count which gives it encouraging evidence of delivery on the new strategy.
It thinks results due in October should point to clear progress in profit and cash delivery and reassure investors.
UBS has upgraded the stock to 'buy' from 'neutral' although its 12-month price target moved to 550p from 660p.
A fair post DC. If I was being ultra bearish I would say 25p would be an absolute bottom. But u genuinely don’t see that happening. Potential for a rerate is much higher in them medium term. In the short term I suppose we are likely to be flat as a pancake.
Tbh wolf the market is fickle. Not sure what the catalyst could be but we know sentiment turns eventually and can be a bolt out of the blue. I suspect they see the downside as very limited now and were banking on larger downside and more negativity from analysts post results. They all seem to be taking the results more positively than us P.I’s. Can’t understand the thinking behind the RCF either nor so much of deflation being passed on to customers. Don’t think the results would have been much worse if product prices were marginally higher. With costs largely down and charges for returns amongst other tailwinds i’d hoped for more. I think they are going to pull a rabbit out of the hat next year personally. It’s a write off until end of feb in my book then the building starts.
Tom, yes.. here you go
https://stream.buchanan.uk.com/broadcast/6504762150a62b392af14caa/651c5a716425ed24552e4452
Think I read it’s only available today. 50 mins long.
Thanks Jeremy, hence the marginal change in sp coke close of business. Cost saving each year was positive and capex spend will reduce. Margins may take time to improve but they seem confident of 6-8%. When this happens we’ll see a consistent stream of profit (I hope).
Not sure whether passing on so much of the deflation to customers was a good idea. I get they are trying to remain competitive but IMO I can’t imagine revenue and customer numbers would have dropped by much more than they already did. If revenue was higher as a result along with other metrics then I’d argue its paid off, but i’m not so sure. I know their proposition is value but I think this was wrongly skewed with unfavourable results. Margin improvement was ok. Stock reduction good. Balance sheet fine. Is it one last kitchen sink job? Get that feeling but wtfdik! Just hope for a more upbeat set of results next time round. Should think revenue will stabilise in the near future and that’s when we’ll see the ship turn.