Given Amazon's challenges in Europe's apparel market, some think it could try to repeat its success of buying scale and a site with a fashion focus through a deal in Europe. Amazon declined to comment on potential deals.
Euromonitor's Ms. Le Rolland said she thought a purchase was a possibility. Amazon is cash-rich, and an acquisition would be "quite a big shortcut as opposed to building something out," she said.
Write to Jeannette Neumann at [email protected] and Laura Stevens at [email protected]
This is a portfolio managers view on Tencent......
" The company's sheer size has prompted caution among some investors. Eric Moffett, a portfolio manager for T. Rowe Price in Hong Kong, said his fund has owned shares since he started managing it in 2014.
But the fund has underweighted Tencent for the past six months due to valuation concerns, he said. He said shares, trading at 40 times projected earnings, look "priced for perfection" -- which can prompt sharp pullbacks, like that seen last week. "
...if you take this forward to ASOS P/E ........ what then ? ......
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ASOS, a global online fashion retailer, yesterday provided its trading update for the 4 months ended 30 June 2017. During the period, Group revenues advanced by +32% to £675.8m, while it increased by +26% on a constant exchange rate basis (CE), against the comparative period (4 months ended 30 June 2016). On a reported basis, total retail sales rose by +32% (CE: +26%) to £660.1m, comprised of +16% growth in the UK to £234.6m and +44% (CE: +32%) growth in international to £425.5m. Within international retail sales, US saw +38% (CE: +26%) growth to £94.4m, EU rose +41% (CE: +30%) to £196.6m, while Rest of World (ROW) recorded +54% (CE: +41%) growth to £134.5m. Retail gross margin during the period remained flat against last year. On the operational front, the Group said Phase 1 transition of its warehouse site from Eurohub 1 to Eurohub 2 is operational, while Phase 2 underway. ASOSs CEO, Nick Beighton, commented This good performance has been underpinned by advances across all areas of our business including retail, technology, warehousing, delivery solutions and customer care. We remain on track and confident of meeting market expectations . The Group is scheduled to release its full year results on 17 October 2017.
Our View: ASOSs performance continued to be strong for the first 10 months of the FY2017, with solid growth across all regions. Combined with strong constant currency results, its figures were boosted by the weaker Sterling against other currencies. Although UK sales year-to-date has slightly dipped to +17% from +18% seen for the first 6 months, continued strong international sales and maintained overall margin was encouraging. Looking down the KPIs, the Group has expanded its number of active customers by +25% year-on-year, with both average basket value and average order frequency improved by +3% and +6%, respectively. Total order rose by +28% year-on-year to 16.9 million, implying conversion rate improvement of +0.1%. Looking ahead, given the strong performance year-to-date, the Group said it expect to deliver its full year reported sales growth at the upper end of the +30% to +35% range, with capex remained unchanged at £150m to £170m. This leads to while pre-tax profit expected to be in line with consensus analysts forecast of £79.4m, which locates them a touch above the mid-point of previous indication of between £72m to £84.5m. Meanwhile, the Groups medium-term reported sales growth guidance was reiterated at c.+20% to c.+25% per annum. Given pre-tax profit remain in line with market expectations, Beaufort reiterate its Buy rating on the share.
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"LSE:ASC:ASOS scorched a three-year high Monday, hitting 6,147p ahead of these interim results. Said results were overall pretty impressive, but a few perceived negatives meant shares in the internet fashion giant slumped as much as 7% ..."
"Education group Pearson will open the corporate week with its nine month trading update, followed by results from online fashion retailer ASOS.Monday 17 OctoberEducation group LSE:PSN:Pearson will open the corporate week with its nine-month ..."
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""We're all looking for our own LSE:ASC:ASOS" an investor told me recently at a company presentation in the City. It's true: the AIM darling has shot the lights out since its IPO in 2001 and patient investors have made a mighty dime. But it's not ..."
"Shrugging off fears of a Brexit-inspired slowdown, LSE:ASC:ASOS kicked trading up a gear in its third quarter, accelerating sales growth beyond City expectations. With its Chinese business finally closed, bosses have now upgraded sales forecasts ..."
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"After a series of profit warnings tipped LSE:ASC:ASOS into freefall in 2014, plenty of brainstorming and cash have made the online fashion retailer for trendy twenty-somethings a much better proposition. Indeed, zonal pricing and a new mobile app ..."
"Against the well-versed industry pressures affecting all clothing retailers this past year, LSE:ASC:ASOS hasn't done too badly. Margins are still recovering after a couple of years of heavy investment, but warehouse and technology improvements ..."
@ despite the press talking about the shift to online the figures for Next show that it is not happening in clothing. (Unless all the growth is in new entrants.)
@ The warm weather has impacted sales and ASOS is in danger of being left with unsold stock having less experience of these things than the majors. Certainly looking at asos.com there are lots of woolly hats featuring heavily.
+ The younger end of the market might not resemble the other parts.
+ There seem to be rumours of ASOS doing well in London.
Until recently I would have expected a very up-beat trading update. Now I am not so sure.
" Is "the next ASOS" taking shape? LSE:ASC:ASOS soared from 50p in 2005 to 7,050p by early 2014, and at 3,200p it now trades on a multiple of 55 times forward earnings - having averaged 85 times in 2014 - while paying no dividend. Capitalised near ..."
"After two years of heavy investment in its technology and warehouse systems, LSE:ASC:ASOS looks ready for a return to double-digit earnings growth. Trading looks solid ahead of the crucial Christmas period and a recent fashion preview sent pulses ..."
"Is momentum still on the upside at SuperGroup (SGP)? The mid-250 shares in this fashion retailer best known for its Superdry brand have more than doubled this year from 770p to test 1,600p after a strong trading update for the company's ..."
"After a string of profit warnings last year and a shaky start to 2015, LSE:ASC:ASOS appears to have put its troubles behind it. Just one month after founder and boss Nick Robertson stepped down, the online fashion retailer has turned falling ..."
<b><i>Final results were broadly in line with our and market expectations. Pre-tax profits in the year to end of August rose by 1% to £47.5m vs. CFE Research £48.0m (Company consensus: £47.2m). Gross margins were reported to be up by 20bps to 49.9% (CFE Research -8bps) recovering strongly in the second half as a result of a strong full price sales mix in this period. Gross margins, however, declined by 230bps in Europe to counter adverse currency exchange movements. Costs were up by 21% impacted by higher payroll and warehousing charges offset by lower marketing. Net cash was much stronger than our forecast at £119.2m benefiting from working capital gains. The current year has started well and the company are guiding toward sales being up by 20%, gross margins being down by 50bps and operating margins being in line with the previous year at broadly 4.1%, which implies earnings growth of c.20%.
Following this update, we are retaining our FY2016 pre-tax profit forecast of £58.0m (EPS: 53.7p). The stock, which has declined from a high of £42, has started to recover from Septembers low of £25. The company is now of a meaningful size with sales forecast at over £1.3bn in FY2016, has relatively strong cashflow and a state of the art logistics infrastructure. Earnings, however, have declined over the last two years and although they are set to improve in the current year, the improvement in momentum, we believe, is priced into the stock. The departure of Nick Robertson as Chief Executive, who was the guiding light of the business, is an added concern. The stock remains highly valued at 54.5x our FY2016 fully diluted earnings forecasts. We are reinstating our recommendation as HOLD from Under Review and our TP at 3000p from Under Review.</b></i>
Is anyone on here looking closely at Asos traffic stats, conversion rates etc? I am looking at some other online retail stocks and think we can make some good predictions if we can consolidate data across the industry.
"Monday 6 JulyTelematics and data provider LSE:TRAK:Trakm8 will reveal its final numbers at the start of the week.House broker finnCap anticipates full-year earnings before interest, tax, depreciation, and amortisation (EBITDA) doubling to Â£2.4 ..."
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