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.

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