Breakingviews: ASOS glitzy rating assumes a lot goes right
Wednesday, April 02, 2014 - 03:26
April 2 - ASOS still fetches over 75 times forward earnings. But with a 22 percent drop in first half profits and global expansion headaches, other retailers won't stand still.
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Eight us states racing has seen and and -- is right that's -- view of breaking these today and joining me now is Dominic and it dominant he's just been listening in on the analysts cool moves like. Place also very out he says that you always on -- they have this. But lived in February when they reported sales to sales -- -- for John your pet beside and two months back. The sales Gregg then was much below Paul much below what -- were expecting so she does that mean in February felt quite -- Today we've got -- a half feet results -- -- -- six months to the end of February inaction can look at them. That it's a lot smoother. And I'm not -- story. Is continuing you know that they're growing -- -- 30%. Sales. I have a role but still growing effective sense cells in the UK which one of the most. Competitive. Retail market for auction markets so is that he's still a growth story I guess my question is how long cannot continue and I think now go into a new phase a phase of investment that investing in. Well houses in and distribution. How much growth continued at the start a rented it has been accustomed to. Shall we found you know the likes of princess Beatrice and Michelle Obama in a -- wearing some of their products. Is this enough to generate interest in other countries and in -- to live at a 190 countries around the wild. Well they've certainly had some success in all the countries there's no doubts about I mean that they stop -- two very running Europe France Germany. In the -- EU as a whole I think sales were up 65%. Over the lost them six months for -- is the same period a year ago. But some that -- among the countries where things are going to be tough take Australia. China and Russia brush are obviously. Have been some recent problems that it has impacted you know the Ruble not hasn't been grateful for their cash coming in in China. That they needed more investment than they thought they would date indicated they need about six. Million. Blocks in China are -- actually the latest on the Canada knowing that it's a bit more back. And in Australia are generous and currency -- it's not all. Plain sailing the city's. But you know there is still a lot of great potential that. And says people all retailer is the biggest bugbear of course is competition. And fierce competition. How does that -- -- look like its intent to bear in this kind of market place. But I think about it I'm fashion retailers -- -- very competitive industry say it they're fairly low barriers to entry. You -- lol it's being invested. Each year every new. -- -- I think on this some figures that has suggested lost here. One point six billion dollars as he would intend. New faction retailers. And so and I was up on the previous years -- some more people a sense an opportunity. I'm a source is doing very well at the moment it is a question what as to whether it can hold on to those games. Bret thank you grimaced Dominick I get that from breaking -- talking about baseless and how is raising. Maybe -- -- to stick I imagine all this is horses.
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