Asos: shares slightly down after trading update

(CercleFinance.com) - Shares in British online fashion retailer Asos fell on Wednesday after the firm's trading statement for the four months to 30 June.


Asos said group sales rose 10% to 1,014.2 million pounds in the period, helped by increasing warehouse capacity, and despite the tough economic and social backdrop.

However, Asos' UK sales slipped 1% to 329 million pounds on a constant FX basis, and US sales fell 2% to 125 million pounds, it said.

The company added that it remains cautious about the impact of Covid-19 on consumption looking forward, but noted that it is "on track" to deliver strong year-on-year earnings growth and return to positive free cash flow over the full-year.

"We remain sellers due to concerns of heightened promotions as we head into the fourth quarter, and considering the strength of the shares the past few months, we see this reversing somewhat," Liberum analysts commented.

Asos shares fell by 0.5% after this trading update. They have risen by over 1.5% so far this year, giving the group a market cap of almost 3.4 billion pounds.

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