RSS Feed

Related Articles

Related Categories

ASOS upping the ante with global expansion

14th October 2010 Print

As ASOS report another successful quarter Nick Raynor, investment advisor at The Share Centre explains what this means for investors.

"This morning, online fashion retailer ASOS reported a 47% increase in sales to £69.7m for the three months ending 30 September 2010.  In 2003, the share price was just 3p and today it stands at 1090p - which means that £1,000 invested back in 2003 would now be worth over £360,000.

"Beginning by copying celebrity styles at affordable prices to now offering a wide range of clothing and accessories, the AIM-listed company also reported a 128% increase in overseas sales. Launching country specific sites has enabled ASOS to boost its international presence as it looks to emulate the success they have seen in the UK - the American site was launched in September and sites in France and Germany are to follow.

"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.

"The share price has had a terrific run since the beginning of the year and its success has led to bid rumours from some big players in the retail sector.