ASOS International business grows stranded

Absrtact: June 7 News, a few days ago, the British fashion Asos issued a profit warning, said that due to the international market slowdown in sales and promotional activities to increase the cost of the company's earnings in this fiscal year will be greatly affected. Since then, ASOS's share price plunged 40% in Thursday.

June 7 News, a few days ago, the British fashion Asos issued a profit warning, said that due to the international market slowdown in sales and promotional activities to increase the cost of the company's earnings in the current fiscal year will be greatly affected. Since then, ASOS's share price plunged 40% in Thursday.

Asos said retail sales in the UK grew by 43% in the quarter ending May, while higher-margin international sales rose by only 17%. Among them, the decline of international business growth rate and the sterling in the international money market strong has a certain relationship.

However, despite a profit warning, ASOS's retail sales were up 25% per cent year-on-year. Company CEO Nick Robertson commented: "Due to various factors, our profit performance in this fiscal year is not as expected." Our accelerated investment in technology and infrastructure underpins our sales target of 2.5 billion pounds and our capital expenditure is still at a leading level. ”

"However, all customer metrics, including active users, new users, order frequencies, and so on, are very positive," he said. As the world's leading online fashion retailer, we are concentrating on promoting ASOS business models globally. ”

According to billion power network, since 2001, ASOS has been the darling of investors. Asos had doubled its growth in a year before announcing a major investment in infrastructure last March.

After a plunge in shares in Thursday, Asos points out that the company's earnings will decline this year, thanks to increased promotional costs, stronger growth in low-margin UK products and Sterling's performance in the currency market. The company's operating margin will also fall from 6.5% to 4.5% this year, according to its forecasts.