ASOS’s first-half underlying sales fell by 9%. However, sales trends improved over the period, and new customers were up 2% across its four largest markets.
First-half underlying cash profit (EBITDA) is expected to rise by around 50%, driven by higher gross margins, lower returns rates and cost-cuts.
Full-year guidance has been reiterated. Underlying cash profit is expected to land between £150-180mn, with broadly neutral free cash flow.
The shares rose 17.1% in early trading.
Our view
HL view to follow.
ASOS key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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