ASOS Annual Report: Performance Returned To Normal Stock Price Rose 19%

ASOS, a fashion business in the UK, reported yesterday in the most recent fiscal year (September 1, 2013 to August 31, 2014):

Total sales of 955 million 300 thousand pounds, an increase of 27% over the same period, the strong exchange rate of sterling has a considerable impact on the growth of markets in Australia and Russia.

Pre tax profit of 46 million 900 thousand pounds ($75 million 900 thousand), down 14% compared with the same period last year.

ASOS has been battered this year, but its profits have fallen less than analysts' expectations.

In 2001, it was listed at a price of 20 pence, and its share price reached a record high of 71.95 in February this year.

Before that, ASOS has been a successful example of the British electricity supplier and the darling of the stock market. It has a strong attraction for the 20 Internet users and Rita Ora and the first lady Michelle Obama.

But this year, ASOS suffered a series of crackdown: the strong pound, the Barnsley warehouse fire, the repair of warehouses and the development of the market in China also cost a lot of money.

After three consecutive profit forecasts, the stock price has fallen by 68%.

Last month, ASOS decided to adopt a price cutting strategy to save foreign markets.

According to Reuters, CEO Nick Robertson told reporters on Tuesday that the strategy takes time to work, but based on the active customer base, the average annual growth rate of 10% over the next five to six years is not unrealistic.

"You will

Our sales volume of 2 billion 500 million pounds (US $4 billion) by 2020 is not a problem.

He also expects that profits will be flat in the coming year, and the 2015-2016 fiscal year will grow slightly.

Analysts believe that the key now is the price reduction efforts in major markets and when the Chinese market will bring profits.

The company's original CFO Nick Beighton was promoted to COO (chief operating officer), and CFO had to find another candidate.

On Tuesday, the stock price immediately rose by 19% on the basis of a signal of stable performance, which ended at 22.51 pounds, or 16%, and the corresponding market value was 1 billion 900 million pounds.