Asos: shares jump 25% after strong results
(CercleFinance.com) - Shares of Asos rose over 25% on Wednesday, a day after the British online fashion retailer reported "record" half-year performance, while acknowledging current trading is being impacted by the COVID-19 pandemic.
Asos said it made an operating profit of 34.6 million pounds in the six months to 29 February 2020, streets ahead of the 4.5 million pounds in the same period a year ago, and also well above the consensus of 13 million pounds.
The performance reflected "strong" trading and good progress reducing non-strategic costs, the group said, while total orders placed rose by 19% to 41.1 million units.
However, demand has been significantly hit since containment measures were introduced, the group said, with sales down about 20%-25% in the past three weeks.
Saying the short-term outlook remains "highly uncertain," Asos is implementing a series of actions to mitigate the sales impact it has been experiencing.
At the same time, a total of 15.8 million new ordinary shares have been placed, raising gross proceeds of approximately 247 million pounds, Asos said in a statement on Tuesday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
Asos said it made an operating profit of 34.6 million pounds in the six months to 29 February 2020, streets ahead of the 4.5 million pounds in the same period a year ago, and also well above the consensus of 13 million pounds.
The performance reflected "strong" trading and good progress reducing non-strategic costs, the group said, while total orders placed rose by 19% to 41.1 million units.
However, demand has been significantly hit since containment measures were introduced, the group said, with sales down about 20%-25% in the past three weeks.
Saying the short-term outlook remains "highly uncertain," Asos is implementing a series of actions to mitigate the sales impact it has been experiencing.
At the same time, a total of 15.8 million new ordinary shares have been placed, raising gross proceeds of approximately 247 million pounds, Asos said in a statement on Tuesday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.