Asos: revenues and profit up but rising capex hits shares
(CercleFinance.com) - Asos reported a rise in revenues and profit for the six months to 28 February 2018, but its shares dipped after it warned of increases in capital expenditures.
The British online fashion retailer said that pre-tax profit rose to 29.9 million pounds in the first half, up 10% from 27.3 million pounds in the same period a year ago.
Retail sales grew at 27% as reported, and were up 26% at constant currencies.
Over the full year, Asos still expects sales growth of between 25% and 30%, but also said it now expects capital costs to increase to 230-250 million pounds in the current financial year, which is higher than expected.
"But to continue growing at this pace the business needs more gas in the tank," one analyst commented.
CEO Nick Beighton said the group was making "substantial investment in (its) future."
Asos shares are currently down 8.7% at 6,416 pence in morning trading on the London Stock Exchange.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The British online fashion retailer said that pre-tax profit rose to 29.9 million pounds in the first half, up 10% from 27.3 million pounds in the same period a year ago.
Retail sales grew at 27% as reported, and were up 26% at constant currencies.
Over the full year, Asos still expects sales growth of between 25% and 30%, but also said it now expects capital costs to increase to 230-250 million pounds in the current financial year, which is higher than expected.
"But to continue growing at this pace the business needs more gas in the tank," one analyst commented.
CEO Nick Beighton said the group was making "substantial investment in (its) future."
Asos shares are currently down 8.7% at 6,416 pence in morning trading on the London Stock Exchange.
Copyright (c) 2018 CercleFinance.com. All rights reserved.