ASOS share price: what to expect from its Q3 results
The low-cost online fashion retailer has seen its share price lose more than 35% of its value since April, with it seemingly no longer immune to the perils affecting its high street rivals ahead of its Q3 results next week.
When is ASOS’ results date?
ASOS will unveil its Q3 results on July 23.
ASOS’ results preview: what does the City expect?
So far this year, ASOS has performed relatively well, with it securing a 14% growth in sales in a highly competitive fashion retail market.
However, its performance has not been reflected in its share price, with its stock losing more than 35% of its value since late-April, as investors seemingly feel that the online fashion retailer is no longer immune from the pressures plaguing many of its high street rivals.
In December last year, the company warned investors about a ‘significant deterioration’ in pre-Christmas trading, which saw its share price tumble more than 40%, falling to £21.28 a share.
Over the first four months of 2019, ASOS managed to claw back its losses, hitting £40.66 a share in late-April, only to see its share price slowly decline once again, with it trading at £26.61 levels as of 11:55 GMT on Monday.
The company is near the end of a major capital expenditure programme that has seen the business invest heavily in expanding its operations, particularly in the US as well as grabbing significant market share in other key geographies.
‘We now have the tech platform, the infrastructure, a constant conversation with our growing customer base who love our own great product and the constantly evolving edit of brands we present to them,’ ASOS CEO Nick Beighton said.
‘We believe that ultimately there will only be a handful of companies with truly global scale in this market. We are determined that ASOS will be one of them,’ he added.
ASOS remains confident that its performance will improve in the second half of the year, with the company leaving its full-year guidance unchanged.
Investors will be hoping the company is able make good on its promise of a stronger H2 performance, which will hopefully have the power to reinvigorate its share price.
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