ASOS have dropped quite significantly in the past week for no particular reason and I view this as the perfect opportunity to invest as I can see them bouncing right back up to the 5.50p mark in the next 2-3 weeks. STRONG BUY!!

Taking all things into consideration today, the SP has responded remarkably well, makes you wonder where we would have been without the terrible news.

pth

I agree pt , it was on it's way,,still when you look at what's happened in London this all pales in to insignificance..

Certainly does Jimmy, hope to meet that loser ii one day.

pth

Me too jb - not sure I want to wait for Xmas figures to see some action, though.

Hopefully this will keep the SP ticking upwards and back to the previous 90p level. Just goes to show that the previous year was not a flash in the pan.

pth


Sales soar at ASOS
MoneyAM
ASOS, the AIM-listed online fashion retailer formerly known as As Seen on Screen, has reported a 77% rise in underlying full year profit.

The company said sales in the first quarter of its new year are tracking over 100% up year-on-year.

For the year to March 31st 2005 it made a profit before tax and amortisation of goodwill of 1.1m, in line with analysts' forecasts that were reduced after a March 3rd profit warning, on group sales up 79% to 13.5m.

ASOS.com registered users as at July 4th stood at 600,000, a 58% year-on-year increase. The website is aimed at internet savvy 18-34 year old women.

Pretax profit was up 240% to 900,000 and cash rose 105% to 2.1m.

Earnings per share increased to 1.3p from 1p last time.

ASOS said it is confident of 'another strong year'.

ptholden,
you pipped me to it by 2 minutes. Well done SD

Good news, this should lift the sp , now just a smooth move to their new distribution center..

Look at this current year forecast - sales tracking 100% on this time last year with the busy Xmas period still to come - so sales of say 27m, with a target gross margin improved to 48%, less admin/amortisation costs up to say 7m gives a net profit of nearly 6m, plus first dividend which could be declared as early as interims, since they will have reached break even by then and have loads of cash to pay out.

Not a bad result at all - but will the market like it? We'll know in 1 minute from now!

sd

I think the answer is yes, sd!!!

pth

A lot of selling into the rise about 80:20 sells to buys so far on steady volume.

I would imagine that a considerable number of short term traders would have bought on anticipation of good results with an associated early spike in the SP, now closing their positions in profit. Will probably take a day or two for things to settle down.

pth

I was rather hoping things would settle UP!

LOL same as that sd , a bit disappionting..

Edit:

take a day or two for things to settle UP!!

Ah! much better, pth.

I imagine older and wiser institutional buyers will emerge when the edge has come off the price today. Looking at the PE it is going some for a business that had a large hiccup in its growth story earlier this year after such a phenomenal rise last year.

On reflection of where this year is going, the fundamental value will out eventually, but will possibly take till post-Xmas trading update to be fully reflected. Until then, a slow but sure rise would be very nice to see.

sd

"We have had a good start to the new financial year and sales are currently
tracking at over 100% year on year."

On reflection, I have no idea what this sentence means. Anyone else know? Does it mean they are at 100% of last year - i.e. the same, no growth - hard to believe? Or does it mean they are 100% up - i.e. double last year's - possible and very good news if true.

Until then my post 1528 could be complete rubbish.

sd

sd

I read it as double last year, although could be wrong.

I wouldn't believe for one moment that you would post complete rubbish!! Perhaps a litttle, but not complete!!! LoL

pth

Looks like the early profit takers are out of the way, and we're off again.

arf arf!!

pth

Hi folk! Just popped into local library. My birthday, so drinks are on me! Not at all surprised at today's statement. sd, the 'tracking' relates to the hitwise figures which show last years volumes in relation to this year - this of course is actual sales but that's how these retail boys (and girls) do their evaluations. Little doubt in my mind that the year on year will continue at something around the 100% level. Its a bit like the tide coming in - there is an inevitability about it. The movement to the internet is gathering pace; fashion is a number one; the ASOS site is excellent; they still only have a small part of the amrket; and they can move into the US as soon as they are ready.

My view is that the sp will get onto last years track; it should be well over 1 by now if we hadn't had the hiccup. OK, that's a bit of a blot on the record but all it was in reality was a drop in marginds for a couple of quarters. MWMI (money....) and I have got a nice little stake built up starting at the bottom - hey, how about that of 42p. Shares should have a good piece on Thursday (John Marshall) and they should be beginning to attract the institutional money! End of month for warehouse is ahead of schedule which was August so I think that is done and dusted. Even more confident of future than with DGT and SEO although perhaps not as dramatic!

Eric

Happy birthday eric, dont forget PCM.