Asos begins to get profits after the sales boost during the holiday season
Asos, the famous fashion brand has begun to gain back lost sales and also profits, which has resulted in an increase in the share price by 9 percent.
Fifty one percent of the total sales of the company comes from international sales and so the revenue increased by 5 percent. Although these figures have been released, specific figures have not yet been released and however, share price has increased up to 2,616p.
Asos Chief Executive Nick Robertson said, “Trading over the last six weeks was in line with expectations, with growth accelerating in the first quarter as anticipated”. The increase in sales has helped investors have more hope that the company will regain its lost business. Concerns of the profitability of the company increased after its rival Boohoo.com shared bad news last week.
An analyst at Langton Capital, Mark Brumby said, “After last week’s warning from Boohoo, the City was obviously worried that Asos would also have had a tough time in December in the UK.” He also said that the company trumpeting its operational performance over the peak period has guided for the whole year in terms of profit and sales and the EBIT margin of the company has remained unchanged.
Last month, the company said that challenging trading conditions have been the main reason why its sales plummeted in the previous year.