ASOS report a 59% increase in revenue
As ASOS's international expansion begins to impact its overall figures, Nick Raynor, investment adviser at The Share Centre explains what this means for investors.
"This morning, online fashion retailer ASOS reported a revenue increase of 59% to £100m in the three months until 31 December 2010.
"ASOS international exposure was a key player in these strong figures, as sales grew 156% to £43.7m. 2010 saw ASOS launch stand-alone sites for America, France and Germany, and further growth overseas should be an attraction for investors.
"The market has expressed disappointment with UK sales figures, but we are happy with the 23% increase in sales especially as the bad Christmas weather caused far more disruption to other retailers.
"Following news that Danish fashion retail group Bestseller, has increased its stake in ASOS by 18.27% in the last two months, investors should watch closely for the possibility of a take over.
"ASOS is in the almost unique position of having no debt and rising levels of cash in the bank. Investors may be disappointed to see there is still no dividend but we are happy to recommend the online retailer as a ‘buy' for investors willing to accept a higher level of risk."