Latest news for ASOS (OTC:ASOMY) Stock

Asos is a global e-commerce player focusing on fashion and cosmetics and targeting the youth segment (20-somethings) globally. Of its revenue, 45% comes from its UK home market, 30% from other European Union countries, 13% from the United States, 12% from the rest of the world. The company ships to 240 countries from its three warehouses located in the UK, continental Europe, and the United States. It offers over 85 000 products on its website from third-party brands and its own labels (Asos Design, Collusion).

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ASOS Posts Loss In H1, Plans To Return On Profit Lane In H2 FY23

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Asos Shares Destroyed By &#39;Unprecedented&#39; Level Of Discounting

Asos H1 Profit Drops

ASOS PLC

<ul>
<li>ASOS PLC&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/asomy#NYSE">ASOMY</a>) reported an H1 FY23&nbsp;<a class="editor-rtfLink" href="https://asos-12954-s3.s3.eu-west-2.amazonaws.com/files/8216/8369/7899/HY23_Results_Statement_-_FINAL_10.05.23.pdf" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">revenue</a>&nbsp;decrease of 8% Y/Y and 7% Y/Y in constant currencies (ex-Russia) to &pound;1.84 billion.</li>
<li>The top-line decline reflects planned capital allocation initiatives to improve profitability and a weak trading environment.&nbsp;</li>
<li>In constant currencies, sales fell in the U.K. by 10% Y/Y, the U.S. by 7% Y/Y and the Rest of the World by 12% Y/Y (ex-Russia), while sales in Europe remained flat Y/Y.</li>
<li>Adjusted gross margin contracted 20bps Y/Y to 42.9% in H1 FY23.</li>
<li>The company reported adjusted EBIT of &pound;(69.4) million vs. &pound;26.2 million in H1 FY22, reflecting inflation and return rates normalisation related negative impact of around &pound;180 million.&nbsp;</li>
<li>Capital expenditure rose to &pound;115.0 million from &pound;86.5 million in the prior year quarter, and free cash outflow stood at &pound;(262.7) million in H1 FY23 (vs. &pound;(256.5) million a year ago).</li>
<li>The company had cash and undrawn facilities of &pound;408.6 million at the end of H1 FY23.&nbsp;&nbsp;</li>
<li>Outlook: For H2 FY23, ASOS expects sales (ex-Russia in constant currencies) to decline in low double-digits Y/Y and adjusted gross margin to expand 200 bps Y/Y.</li>
<li>The company projects an adjusted EBIT of &pound;40 million-&pound;60 million, with a margin of around 3%. It projects capital expenditure of &pound;60 million-&pound;85 million and free cash inflow of over &pound;150 million.</li>
<li>For FY23, ASOS anticipates free cash outflow of around &pound;(100) million and capital expenditure of &pound;175 million-&pound;200 million. The company says it is on track to garner Driving Change agenda benefits of over &pound;300 million.&nbsp;</li>
<li>&quot;We are improving our gross margin run rate in the face of significant headwinds, are starting to see the benefits of a repositioned stock profile, and are taking action to reduce the proportion of our sales which are not profitable. Initiatives are in place to drive a further c.&pound;200m of benefit in the second half and I am very confident of our return to sustainable profit and cash generation in the second half of the year and beyond,&rdquo; stated Jos&eacute; Antonio Ramos Calamonte, CEO&nbsp;</li>
<li>Price Action: ASOMY shares closed lower by 7.08% at $8.14 on Tuesday.</li>
</ul>

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Stocks That Hit 52-Week Highs On Tuesday

British fashion retailer Asos PLC/ADR (OTC: <a class="ticker" href="https://www.benzinga.com/stock/asomy#OTC">ASOMY</a>) shares are down 44 percent since Friday after the company released a profit warning.
Asos CEO Nick Beighton said the&nbsp;drop is due to an staggering amount of discounting items, according to <a href="https://www.theguardian.com/business/2018/dec/17/asos-issues-shock-profit-warning-as-november-downturn-takes-hold-fashion-retailer">The Guardian</a>.&nbsp;
&ldquo;In fashion we are seeing an unprecedented level of discounting, certainly something I have not seen before, and that&rsquo;s across the board.&rdquo;&nbsp;
Beighton reportedly said that November was a very material month for Asos from both a sales and cash margin perspective, and that it fell significantly behind expectations.
The CEO said the company misjudged Black Friday by offering discounts that fell short of its competitors.
&ldquo;The current backdrop of economic uncertainty across many of our major markets together with a weakening in consumer confidence has led to the weakest growth in online clothing sales in recent years,&rdquo; he said in a trading update.
<h3>Company Problem Or Sectorwide Weakness?&nbsp;</h3>
Sports Direct International PLC ADR (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sdisy#OTC">SDISY</a>)&nbsp;CEO Mike Ashley also reiterated&nbsp;how difficult November was for retail.
&ldquo;November was the worst on record, unbelievably bad,&rdquo; <a href="https://www.theguardian.com/business/2018/dec/13/mike-ashley-launches-debenhams-broadside-sports-direct">Ashley said, according to The Guardian.</a>&nbsp;&ldquo;No one could have budgeted for that. Retailers just cannot take that kind of November. It will literally smash them to pieces.&rdquo;
The news rattled the industry, but it remains to be seen whether the drop is indicative of the health of the retail&nbsp;sector&nbsp;or representative of Asos&rsquo; questionable merchandising.
Twitter Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/twtr#NYSE">TWTR</a>) users were quick to point out how Asos may have lost touch&nbsp;with its audience after conducting a quick search of its <a href="https://www.benzinga.com/news/18/11/12664110/rhone-looks-to-pioneer-an-underserved-premium-mens-activewear-category">menswear</a> offerings.
<blockquote class="twitter-tweet">Let&rsquo;s be honest, ASOS is suffering because of the awful crap for sale on their website at daft prices. Who is their demographic anymore? It&rsquo;s certainly not the average man on the street - here are four choice pieces that were first to find <a href="https://t.co/n22WR1pNTs">pic.twitter.com/n22WR1pNTs</a>
&mdash; Jamesy (@jamesydraws) <a href="https://twitter.com/jamesydraws/status/1074583716515733505?ref_src=twsrc%5Etfw">December 17, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet">
ASOS: why is no one buying our stuff 
Also ASOS: <a href="https://t.co/c4H0VPipgX">pic.twitter.com/c4H0VPipgX</a>
&mdash; Kat Haylock (@kat_haylock) <a href="https://twitter.com/kat_haylock/status/1074605018018402305?ref_src=twsrc%5Etfw">December 17, 2018</a></blockquote>
<blockquote class="twitter-tweet"><a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/12/12797906/footwear-expert-tariffs-hurt-nike-in-a-different-manner">Matt Powell of NPD Group</a> told Benzinga that the sneaker market is the most promotional it has ever been, driven by brands&rsquo; direct-to-consumer businesses.</blockquote>
<blockquote class="twitter-tweet">&quot;Brands are discounting to drive sales. And retailers must respond,&rdquo; Powell said.</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>Over-the-counter Asos shares were down 6.61 percent at $27 at the time of publication Thursday.&nbsp;
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/12/10855332/a-post-sneaker-world-how-small-footwear-brands-are-beat">A Post-Sneaker World: How &#39;Small&#39; Footwear Brands Are Beating The Giants</a>
<a href="https://www.benzinga.com/news/18/07/11993027/micro-influencers-a-growing-component-of-apparel-brand-strategy">Micro-Influencers: A Growing Component Of Apparel Brand Strategy</a>

Asos Shares Destroyed By 'Unprecedented' Level Of Discounting

Asos PLC (OTC: <a class="ticker" href="/stock/asomy#OTC">ASOMY</a>) reported a 10% drop in its profit for the six months ended Feb. 28.
Asos posted a pretax profit of 18.0 million pounds ($26.5 million) for the half year, versus a year-ago profit of GBP20.1 million. 
Its revenue gained 14% to GBP550.5 million. 
Retail sales climbed 14%. U.K. retail sales gained 27%, while international retail sales rose 5%.
Asos shares fell 0.46% to close at $53.70 yesterday.

ASOS PLC (OTC: <a class="ticker" href="/stock/asomy#OTC">ASOMY</a>) reported a 30% gain in its Q1 retail sales. 

ASOS' total retail sales for the quarter surged to 165.8 million pounds, from GBP127.1 million, in the year-ago period. Its UK retail sales climbed 24%, while international sales rose 34%.

ASOS Q1 Sales Up 30%

Asos PLC (OTC: <a class="ticker" href="/stock/asomy#OTC">ASOMY</a>) reported a 31% rise in its first-quarter retail sales. 

Asos's retail sales climbed to 136.9 million pounds ($212.0 million), versus GBP104.2 million, in the year-ago period. UK retail sales gained 8% to GBP48.1 million, while international retail sales jumped 49% to GBP88.8 million. 

Asos shares closed at $26.30 yesterday.

Asos Q1 Sales Surge 31%

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