What the City is saying about Asos following its preliminary results
“It is important news in our view that Nick Beighton, current chief financial officer will be taking on the newly established role of chief operating officer while Asos will be looking for a new CFO.
“This will likely be viewed positively by investors, some of whom have been claiming that in the current phase of growth Asos needs further management additions.”
Christodoulos Chaviaras, Barclays
“Asos is far from broken, although operational and infrastructure investments mean flat profits [estimated] for 2015.
“We believe investors looking for growth opportunities and value from ecommerce are better placed looking at the newer businesses on the market such as Boohoo, particularly as Asos embarks on a period of significant investment and restructuring.”
John Stevenson, Peel Hunt
“There will, we believe, inevitably continue to be questions over the robustness of the company’s model, particularly its development strategy overseas after the recent revision to full-year ‘15 sales forecasts in international across the US and Europe.
“More worrying perhaps, the company’s recent ‘damage limitation’ strategy has, we believe, impacted the its entrepreneurial ethos and held back its evolution.”
Freddie George, Cantor Fitzgerald
“As it stands, its domestic UK market and the more local European arena have remained hero territories for Asos, being the only divisions to drive higher year-on-year profits.
“Sales growth in the UK alone was a standout 35%. However, these areas too have been hit higher costs of sales.
“Chief executive Nick Robertson is keen to point out the long-term ambitions of the retailer. Yet the way things stand, it is clear that some investors are growing impatient.
“With Asos’ share value halving over the course of the year, it is evident that confidence in the retailer’s ability to generate a fast turnaround is mixed.”
Anusha Couttigane, Conlumino