- Unofficial guidance signals further earnings disappointment
- Cost-of-living crisis limits sales growth
- Management under fire for possible selective disclosure
actions onASOS(ASC)fell more than 7% to a 10-year low of 635.5 pence, according to an article insunday times. The newspaper reported that the online fast fashion retailer has privately told city analysts that pre-tax profit for the year just ended will be at the lower end of the stated range of £20million to £60millionin June.
That range was well below the then prevailing consensus of £92m.
Feeling the pressure from skyrocketing costs and with cash-strapped shoppers cutting spending on non-essential clothing and returning more products, ASOS told analysts that sales growth in the new fiscal year is likely to be 9.8% below consensus. .
Aftersunday timesStory, a source close to ASOS stressed that calls ahead of the shutdown were routine and no non-public information would be shared.
LONG LINE OF NEGATIVES
However, this selective information storm is the latest in a long line of negative points for the 20+ fashionista site.
ASOS shares plummeted on a string of profit warnings, Chief Executive Nick Beighton resigns and then CFO and News Operations Director Mat Dun will also resign.
Sentiment towards ASOS has also soured after the Competition and Markets Authority (CMA) launched an investigation into "green" claims by suppliers and complaints about canceled orders, although the retailer has completed its search for a new CEO following the appointment of José Antonio has . Ramos Calamonte on the bench.
WHY SHORE CAPITAL IS A SELLER
"While it is customary to have pre-closing discussions," Shore Capital said, "and the company has stated that no non-public information has been disclosed, we are concerned about the possibility of selective disclosure.
"According to the article, an analyst anonymously raised concerns about how ASOS is handling expectations."
The broker added: "While expectations for the overall market have not necessarily increased, we would be very concerned about the basis for an orderly market in the group's shares as the discussions and research notes surrounding the forecasts appear to have been deliberately selective discussions with analysts." .
"As a result, regardless of reality, we would be very negative on the possibility of such behavior and reiterate our Sell recommendation."
LEARN MORE ABOUTASOS
Broadcast Date: September 05, 2022
Shares in ASOS have cratered on a string of profit warnings, the departure of CEO Nick Beighton and then the news finance director and chief operating officer Mat Dun is also stepping down.Will ASOS survive? ›
We believe that this is a temporary blip in a phenomenal 20-year track record of profitable growth, and that ASOS will survive and return to profitable growth in the medium term. Even at well below historic levels, this should deliver >35% IRR's for shareholders from today's share price.What is the target price for ASOS share? ›
Stock Price Forecast
The 25 analysts offering 12-month price forecasts for ASOS PLC have a median target of 9.60, with a high estimate of 20.41 and a low estimate of 2.29. The median estimate represents a -12.71% decrease from the last price of 11.00.
10 Wall Street analysts have issued "buy," "hold," and "sell" ratings for ASOS in the last twelve months. There are currently 1 sell rating, 6 hold ratings and 3 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "hold" ASC shares.What is ASOS weakness? ›
Reducing Market Share: ASOS is getting Intense competition from the global retail players and the e-commerce platforms like Alibaba, AllSaints etc. and that means a limited market share of ASOS. Limited Presence: The brand is largely dependent on a few countries for its major revenue like the UK, the USA and Europe.What is happening to ASOS? ›
Under plans laid out by chief executive Jose Antonio Ramos Calamonte, who took over in June, Asos will cut the amount of items it stocks, rein in spending, and slow investment in its robotic warehouses in the US which it said had become too complex and expensive.Are ASOS in financial trouble? ›
Asos Plc is the UK's worst-performing stock of 2022, plunging 78% as cash-strapped Britons cut spending on clothes and the online retailer struggles with soaring costs and rising debt.How is ASOS doing financially? ›
ASOS delivered total sales growth of 4%[i](1% on a reported revenue basis[ii]) with an adjusted profit before tax ('PBT') of £22.0m (adjusted PBT margin of 0.6%), in line with guidance. The reported loss of £31.9m is stated after £53.9m of adjusting items.Is ASOS a good share? ›
Share price forecast in GBX
The 27 analysts offering 12 month price targets for ASOS plc have a median target of 750.00, with a high estimate of 1,650.00 and a low estimate of 200.00. The median estimate represents a -22.12% decrease from the last price of 963.00.
|Summary||Previous dividend||Next dividend|
|M & M||1386.7||0.53|
asos.com's top 5 competitors in December 2022 are: zara.com, urbanoutfitters.com, next.co.uk, boohoo.com, and more. According to Similarweb data of monthly visits, asos.com's top competitor in January 2023 is zara.com with 111.6M visits.Is ASOS oversold? ›
It now trades on only 13 times 2023 earnings, which is a very low level given its past record. Of course, just because a share is oversold, doesn't mean that it can't fall further before it recovers.Why is ASOS better? ›
ASOS' focus on the customer experience, as well as its investment in the latest online innovations and its ongoing efforts to become more sustainable, have helped it to stand out from other clothing retailers.Is ASOS a takeover target? ›
ASOS PLC (LSE:ASC) might be a potential buyout target according to retail guru Clive Black at Shore Capital even though he rates the online fashion retailer as a 'sell'.Who is ASOS target market? ›
Asos markets itself as the go-to fashion retailer for young consumers and primarily targets 16 to 34 year olds across a broad socio-economic demographic.How does ASOS compete? ›
ASOS has achieved great success by positioning its own brands within these price points, ASOS's competitive advantage here is multilayered. On the one hand, it can offer culturally relevant products faster than traditional brands but can also offer similar quality goods at a more affordable price.Does Nordstrom own ASOS? ›
Nordstrom has acquired a minority stake in Asos and plans to expand its partnership with the ... [+] In an attempt to attract younger consumers, Nordstrom has acquired a minority stake in Asos Holdings, whose portfolio includes the Topshop, Topman, Miss Selfridge and HIIT brands.Is ASOS growing? ›
ASOS generated £3.91 billion revenue in 2021, a 19% increase on 2020.
ASOS has embarked on a new partnership where its unsold stock will be sold on Secret Sales' website. Secret Sales customers will be able to shop from a range of up to 1,000 products from ASOS-owned brands, including ASOS Design, Collusion, Reclaimed Vintage, Topshop, Topman and Miss Selfridge.How much is ASOS debt? ›
|Fiscal data as of Aug 31 2022||2022||2020|
|Total current liabilities||1,040||818|
|Total long term debt||830||291|
Total liabilities on the balance sheet as of August 2022 : $2.31 B. According to ASOS's latest financial reports the company's total liabilities are $2.31 B. A company's total liabilities is the sum of all current and non-current debts and obligations.What is ASOS current market share? ›
In the Fashion market in the United Kingdom, asos.com is ranked #3 with > US$1,500m in 2021. Therefore, asos.com accounts for 0.0% - 5.0% of eCommerce net sales in this category. The top stores are sainsburys.co.uk, next.co.uk and asos.com.Is owning 1 share good? ›
The Bottom Line. Assuming you choose a reliable company, it is worth investing in one share of stock. Your money is more likely to grow in the stock market than in a savings account, and you may enjoy stock splits, dividends, and other developments that increase your wealth effortlessly.What are the 5 highest dividend paying stocks? ›
- Dow Inc. ...
- International Business Machines (IBM) ...
- Verizon Communications (VZ) ...
- AT&T (T) ...
- Intel (INTC) ...
- Philip Morris International (PM) ...
- Walgreens Boots Alliance (WBA) ...
- 3M Company (MMM)
Once the dividends are distributed, the share price plummets immediately. In many cases, this fall in the share price is almost equal to the dividend that has been announced. For example, if company X has distributed dividends worth Rs.Do stocks Go Up After dividend? ›
After the declaration of a stock dividend, the stock's price often increases. However, because a stock dividend increases the number of shares outstanding while the value of the company remains stable, it dilutes the book value per common share, and the stock price is reduced accordingly.How did ASOS get so big? ›
The growth that came from investors allowed the brand to explore new products to sell, including beauty, accessories, and skincare items. The company had some of its own branded items, but was saturated with hundreds of different boutique brands that were only able to sell their products on ASOS.What are the top 10 stocks to buy right now? ›
- Amazon.com, Inc. (NASDAQ: AMZN)
- The Walt Disney Company (NYSE: DIS)
- Palo Alto Networks, Inc. (NASDAQ: PANW)
- The Boeing Company (NYSE: BA)
- Prologis, Inc. (NYSE: PLD)
- Johnson & Johnson (NYSE: JNJ)
- MercadoLibre, Inc. (NASDAQ: MELI)
- Costco Wholesale Corporation (NASDAQ: COST)
- Reliance Industries. Multinational Conglomerate.
- Tata Consultancy Services (TCS) Information Technology.
- Infosys. Information Technology.
- HDFC Bank. Banking.
|3.||Easy Trip Plann.||49.70|
Since 2014, sales have more than quadrupled in the United States, projecting ASOS beyond European fashion borders.What is better than ASOS? ›
- Elevated and Affordable: Zara. Image Source: H&M. ...
- Something For Everyone: Boohoo. Image Source: H&M. ...
- Sexy and Statement-Making: PrettyLittleThing. ...
- For Great Everyday Pieces: Princess Polly. ...
- Versatile and Cool: Mango. ...
- Basic and Affordable: H&M. ...
- Whimsical and Fun: Nasty Gal.
- Miss Selfridge. ...
- Nasty Gal. ...
- Revolve. ...
- Missguided. ...
- TopShop. ...
- PrettyLittleThing. ...
- French Connection. ...
Some traders wrongly interpret oversold as a buy signal. Instead, it is more of a warning. It informs investors that an asset is trading below the low end of its recent price range or at a lower fundamental ratio than usual. This does not imply that you should purchase the asset.What happens after a stock is oversold? ›
When a stock is oversold, it trades at a price below its intrinsic value. Put simply, it trades at a price that's much lower than it should. This means that it's worth much more than the price that it's trading at in the market.Should we buy oversold stocks? ›
Oversold is mistakenly viewed by some traders as a buy signal. Instead, it is more of an alert. It lets traders know that an asset is trading in the lower portion of its recent price range, or is trading at a lower fundamental ratio than it typically does. This doesn't mean the asset should be bought.What is ASOS famous for? ›
a global online fashion and beauty retailer. It offers branded and own label products, including women's wear, men's wear, footwear, accessories and jewelry and beauty products.What did ASOS stand for? ›
The name ASOS is an acronym for "As Seen On Screen", although many customers of the brand are unaware of this fact.
Though it stocks a slightly higher price point than Shein, ASOS is another affordable fashion retailer that consistently offers a wide array of trendy merchandise you'll love from a range of labels, along with its namesake brand. ASOS has an equally expansive collection for plus, petite, tall, and maternity sizes.Are ASOS struggling? ›
“Asos does not go unscathed amid the cost-of-living crisis. Even this giant retailer is no match for the financial struggles tightening the belt on the industry.Are ASOS in trouble? ›
Asos sinks to a loss and warns of tough months ahead as shoppers make cutbacks amid cost-of-living crisis. Asos suffered an 89 per cent drop in adjusted pre-tax profits last year, resulting in an operating loss of nearly £10million.Is ASOS in debt? ›
' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. Importantly, ASOS Plc (LON:ASC) does carry debt.How has inflation affected ASOS? ›
Online fashion retailer Asos has reported a big loss as its customers spend less on fashion due to the rising cost of living. The firm saw a loss of nearly £32m in the 12 months to August, compared with a profit of £177m last year. The firm expects shoppers to cut back further this year as living costs soar.Is ASOS ethical 2022? ›
In summary, ASOS does work closely with their stakeholders in order to work towards creating a more ethical workplace environment for their employees. However, this is where their efforts end when it comes to fair labor.What company owns ASOS? ›
The company operates through its wholly owned subsidiary, ASOS.com Ltd. a global online fashion and beauty retailer. It offers branded and own label products, including women's wear, men's wear, footwear, accessories and jewelry and beauty products.