Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  ASOS plc    ASC   GB0030927254

ASOS PLC (ASC)
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

H&M cuts prices to shift leftover summer clothes

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/15/2017 | 04:38pm CEST
File photo shows people walking past the window of a H&M store in Paris

Budget fashion group H&M (>> Hennes & Mauritz) has slashed prices to shift unsold summerwear, in the latest sign the Swedish company is struggling to keep pace with rivals as young buyers move online.

Budget fashion group H&M (>> Hennes & Mauritz) has slashed prices to shift unsold summerwear, in the latest sign the Swedish company is struggling to keep pace with rivals as young buyers move online.

Seemingly unstoppable for decades, H&M has been hit by tougher competition in the past couple of years from cut-price brick-and-mortar rivals. It is also trying to improve its e-commerce offering to counter new online-only players.

H&M entered its third quarter with higher-than-usual inventories that needed to be sold before autumn collections arrived. On top of that, overall demand has been sluggish in some of its key markets, such as Germany.

"The rapid shift from offline to online in the young value fashion market has been one factor behind disappointing sales trends in the past couple of years," said Societe Generale analyst Anne Critchlow, who has a "sell" rating on H&M's shares.

"In most countries, online is not yet integrated with the stores and free delivery and free returns are not available."

Sales at H&M, the world's second-largest clothing retailer after Zara owner Inditex (>> Inditex SA), reached 51.2 billion crowns (£4.72 billion) in its June-to-August financial quarter against a forecast 51.6 billion in a Reuters poll.

Local-currency growth was 4 percent, just below forecast.

H&M said the aggressive summer markdowns had led to an improved inventory position ahead of the fourth quarter and that autumn sales were off to a good start.

H&M's shares, which have tumbled from all-time highs near 370 crowns in 2015, were up 2.2 percent to 218.10 crowns at 1400 GMT.

The company has launched several independent and mostly higher-end brands in recent years to broaden its customer base in the face of growing competition in its budget segment, but the core H&M chain still accounts for the bulk of its sales.

H&M is also intensifying efforts to catch up with services offered by pure-online players such as Asos (>> ASOS plc) and Zalando (>> Zalando) as shopper behaviour and expectations transform even faster than H&M had expected.

It is now testing "click-and-collect" - picking up items bought online in stores - in Britain, and rolling out faster delivery options and online returns in stores in some markets.

RBC Capital Markets Richard Chamberlain with an "outperform" rating on H&M, said he expects sales and gross margin trends to improve next year helped by the online improvements.

(This version of the story refiles to clarify quote in paragraph four)

(Editing by Jason Neely/Keith Weir)

By Anna Ringstrom and Helena Soderpalm

Stocks treated in this article : ASOS plc, Hennes & Mauritz, Inditex SA, Zalando
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ASOS PLC
10/19 LVMH MOËT HENNESSY VUITTON : M&S and ASOS join TFL at Leather Sustainability in ..
10/18 ASOS : chief welcomes surge in profits as overseas revenue rises
10/18 ASOS : upgrades sales forecasts
10/17 FTSE inches down, Merlin collapses on poor summer trading
10/17 AMAZON COM : ASOS raises sales guidance as fast-fashion formula maintains moment..
10/17 KOOVS : entering British market
10/17 ASOS : Final Results
10/16 ASOS : sees potential in visual search to drive sales
10/16 ASOS : looks abroad for sales growth
10/15 SOMERSET CIDER CHOCOLATES AND A HELL : what to buy this week
More news
News from SeekingAlpha
10/18 ASOS plc ADR 2017 Q4 - Results - Earnings Call Slides
10/17 ASOS's (ASOMF) CEO Nick Beighton on Q4 2017 Results - Earnings Call Transcrip..
10/17 ASOS reports FY results
07/14 ASOS' (ASOMF) CEO Nick Beighton on Period 3 Trading Update - Earnings Call Tr..
07/13 ASOS trading statement for 4M ended June 2017
Financials ( GBP)
Sales 2018 2 433 M
EBIT 2018 100 M
Net income 2018 81,3 M
Finance 2018 135 M
Yield 2018 -
P/E ratio 2018 57,24
P/E ratio 2019 45,87
EV / Sales 2018 1,83x
EV / Sales 2019 1,47x
Capitalization 4 590 M
Chart ASOS PLC
Duration : Period :
ASOS plc Technical Analysis Chart | ASC | GB0030927254 | 4-Traders
Technical analysis trends ASOS PLC
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 61,8  GBP
Spread / Average Target 12%
EPS Revisions
Managers
NameTitle
Nicholas Timothy Beighton Chief Executive Officer & Director
Brian McBride Chairman
Helen Jane Ashton Chief Financial Officer & Director
Clifford Cohen Chief Information Officer
Nicholas Jon Robertson Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
ASOS PLC10.60%6 051
INDITEX SA-3.61%114 930
FAST RETAILING CO LTD-12.62%34 226
ROSS STORES-3.48%24 416
ZALANDO14.83%12 417
L BRANDS INC-36.03%11 956