Boom time for Asos after summer profit warning
Online fashion firm Asos is set to unveil another double-digit hike in annual profits on Wednesday despite spooking investors with a recent alert over sales.
The group has seen shares plummet since July, when it warned that annual sales growth will be at the lower end of market forecasts after missing targets. But retail experts are expecting a reassuring set of full-year figures, due to show underlying pre-tax profits rising by 20 per cent to £100.3 million.
Its investment plans are also seen as future-proofing the business.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said the firm is still a “force to be reckoned with”.
And Greg Lawless, an analyst at Shore Capital, said: “In our view, Asos remains a structural winner given the shift online together with its global aspirations and the opportunity to leverage the overseas investments in distribution capacity.”