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    ASOS Takes A Price Cut Strategy To Boost Stock Prices.

    2015/1/17 18:40:00 32

    ASOSPrice Reduction StrategySales Volume

    Over the past few years, high street clothing retailers in the United Kingdom are generally depressed. ASOS, once a model of British retailing and a favorite of the stock market, has soared to 71.95 in February 2014.

    ASOS is loved by the younger generation with internet thinking, and the famous singer Rita Ora and the first lady Michelle Obama are also fans of it.

    However, in 2014,

    Britain

    Online retailer

    ASOS

    It was very difficult and the situation finally improved at the end of the year.

    During the Christmas season, the demand for British home market was strong, ASOS sales increased sharply and stock surged.

    Hard 2014

    According to reports, ASOS has just had a tough year and has been released three times.

    Profit warning

    The market value evaporated by about 2/3.

    Factors contributing to this situation include:

    Sterling is strong, and overseas markets are flagging.

    Competition is increasing and expansion is difficult. ASOS has substantially increased infrastructure investment to restore the depressed international market.

    Barnes Leigh's warehouse fire in South Yorkshire forced ASOS UK website to stop selling for nearly 48 hours.

    Opening up the Chinese market is facing many challenges.

    ASOS Brochure

    Big reversal at the end of the year

    In the face of the continuing downturn in overseas markets, ASOS adopted a price reduction strategy. As of Tuesday, sales in the UK market increased by 27% compared with the same period last year, while sales in overseas markets increased by 5% compared with the same period last year. Sales in the six week ended up 15% in the six week ended January 9, 2015, while sales in the three months ended up 8% over the same period last year.

    In the face of the continuing downturn in overseas markets, ASOS adopted a price cut strategy, and sales gross margin fell by 2%.

    But ASOS believes that the price reduction strategy has increased overseas sales and achieved the desired results.

    On Tuesday, ASOS shares opened up 9%.

    The company's CEO Nick Robertson said the company's sales situation was consistent with expectations, and the annual sales target and operating profit target remained unchanged.

    Related links:

    In the three months to November 2014, Nike net income increased by 23% to $655 million, reflecting strong gross revenue growth and gross margin expansion.

    According to Thomson Reuters, earnings per share grew by 25% to 74 cents, which is 70 cents higher than analysts estimate.

    Gross margin increased by 120 basis points to 45.1%, mainly due to Nike's development of high profit products, high growth of sustained growth and DTC (direct marketing to consumers) business, as well as benefits from moderate foreign exchange growth.

    Total revenue increased by 15% to $7 billion 400 million.

    Nike brand sales increased by 17% to US $7 billion, and all kinds of products grew except golf ball products.

    Driven by the continuous growth of the existing direct distribution market and the pformation of Europe and Asia, Converse's total revenue increased by 24% to 434 million US dollars.

    However, after Nike revealed that its main western European market will increase by 13% in the future, its share price will drop by 2.1% to 95.08 dollars after the expected 15% in the plateau.

    Nike CEO Mark Parker said: the strong growth figures in the second quarter show that Nike is a growth enterprise.

    Because we have been focusing on the biggest business opportunities, our product mix capability has been growing up.

    And the breadth and depth of product portfolio, season after year, year after year to bring bright Nike report card.


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    Nike'S Profit Growth Will Decline In Future Orders

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