As Asos reports a 31% sales rise in its first quarter, Drapers takes a look at what city analysts make of the etailer’s performance.
Broadly analysts were bullish about the outlook for Asos, expecting the growth seen in the first quarter to continue as the etailer invests further in international growth and a new web platform.
Singer Capital Markets analyst Matthew McEachran said: “UK growth has accelerated, which we believe is a direct result of the early reinvestment initiatives. With more to come this bodes well.”
He added that international growth should continue to be strong for the retailer.
“Growth in the US was ahead of expectations and a new in-country team should be fully in place by the autumn meaning momentum should continue to build,” he said.
John Stevenson, analyst at Peel Hunt, said: “We expect sales momentum to accelerate over the year”, predicting that he sees full year 2013 earnings “as a year of consolidation, as Asos implements its new web platform, the catalyst for further innovation and initiatives.”
Investec analyst David Jeary said that he expects shares to move upwards today, in light of what he describes as a “strong statement”.
“This is a solid statement from Asos, and we’d expect consensus forecasts to remain unchanged, albeit with risk to the upside, as comparatives ease from here,” he said.