Apr 11, 2018

Asos shares slide despite profit rise

Online fashion retailer Asos has seen its shares slump 9% in early trading, despite posting a 10% rise in half-year profits to £29.9m. The firm also reported retail sales of £1.13bn for the six months to 28 February, up 27% compared to the same period in the previous year. The shares fell as Asos said it would reinvest up to £250m in its operations. "Any retailer growing at 20% plus a year will need to invest, but what's disappointing about Asos is its tendency to underestimate capital expenditure requirements by some tens of millions a year," he added. So far this year, Asos has spent about £95m on its business. "Alongside our investment in our people and our technology, we are accelerating investment in our distribution and logistics, laying the foundation for £4bn of net sales, a further step in building Asos into the world's number one destination for fashion-loving 20-somethings."

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