ASOS announced it's trading statement for the last quarter today. Sales have missed our estimates on all regions and the company failed to meet the 1 billion sales goal as expected. The stock is down 11% today.
UK revenues were up 35% (est. 37%), US revenues were up 19% (up 25% on CCY) for the year and 0% for the last quarter. EU sales rose 44% (45% in CCY) and RoW sales up only 5% for the FY (-5% in the 4th quarter). Exchange rates had a significant adverse effect on sales figures especially in the last quarter (Total retail sales up 15% while on constant exchange rate basis: up 21%).
The company also announced a large drop in gross margin for Q4 (-640bps), with a fire at the Barnsley distribution centre negatively contributing on this large drop of margin.
However other metrics as as active customers show impressive performance. ASOS had 8.8 million active customers at the end of August representing a rise of 25% year-on-year.
After revising our sales estimates the estimated value of ASOS stock is £29.51 based on a 14 year Discounted FCF model. The reduction in the estimated value is mainly influenced by the lower sales estimates.
**The information contained in this post as well as any information within this website is intended for informational purposes only. This is not a recommendation, offer or solicitation to purchase or sell any stock or other securities.
UK revenues were up 35% (est. 37%), US revenues were up 19% (up 25% on CCY) for the year and 0% for the last quarter. EU sales rose 44% (45% in CCY) and RoW sales up only 5% for the FY (-5% in the 4th quarter). Exchange rates had a significant adverse effect on sales figures especially in the last quarter (Total retail sales up 15% while on constant exchange rate basis: up 21%).
The company also announced a large drop in gross margin for Q4 (-640bps), with a fire at the Barnsley distribution centre negatively contributing on this large drop of margin.
However other metrics as as active customers show impressive performance. ASOS had 8.8 million active customers at the end of August representing a rise of 25% year-on-year.
After revising our sales estimates the estimated value of ASOS stock is £29.51 based on a 14 year Discounted FCF model. The reduction in the estimated value is mainly influenced by the lower sales estimates.
**The information contained in this post as well as any information within this website is intended for informational purposes only. This is not a recommendation, offer or solicitation to purchase or sell any stock or other securities.
