Online retailer expected to surge
Asos investors are expected to cheer surging revenue as the online retailer looks to bounce back from a string of profit warnings.
Investors in the company have had a reality check over the past 12 months, watching shares slide by more than 50%.
The business plunged in value after it warned on profits in December 2018 and July 2019, as it failed to live up to lofty expectations.
However, it is still expected to post doublefigure sales growth in its full-year results on Wednesday as customers continue to favour online over the high street.
Analysts forecast Asos will report a 12% jump in revenues to £2.7 billion for the year to August.
For the new financial year, analysts are forecasting 15% sales
“Analysts forecast a 12% jump in revenues”
growth to reach £3.1bn for the year.
The retailer has forecast it will post a pre-tax profit of between £30 million and £35m, after around £50m in restructuring and transition costs. It is expected to deliver a significant decline on profits from last year, when it delivered a pretax profit of £102m.
Asos warned over profits in July after it said it had struggled in getting its Berlin and Atalanta factories up to full speed.
Other events due to take place this week are:
Tomorrow – Finals: Bellway Homes. Trading update: Hays, Marstons.
Wednesday – Finals: Asos. Trading update: Barratt Homes, Segro, BHP, Rio Tinto.
Thursday – Finals: WHSmith.
Friday – Trading update: London Stock Exchange Group, InterContinental Hotels.