ASOS Market Value First Exceeded Marsha General Store

According to the world clothing shoes and hats net, Britain

The market value of ASOS PLC (ASC.L) for the first time surpassed that of the country for the first time on Friday, 17.

Retailer Marks and Spencer Group PLC (MKS.L)

The London financial market uses the "Tesla moment" of high street market to define the scene of emerging online technology companies overcoming traditional retail giants.

At the end of Friday, ASOS PLC (ASC.L) rose 2.2% to 5872 pence, with a market value of 4 billion 890 million pounds, while Marks and Spencer Group PLC (MKS.L) Martha released its interim results in November 8th and announced that the chief financial officer would go down after leaving office, so far it has fallen nearly 10%, and its market value dropped to 4 billion 880 million pounds on Friday.

At the end of August this year, Mark Photiades, a retail analyst at Cantor Fitzgerald, pointed out that the emergence of this moment is only a matter of time.

According to the data of Mark Photiades, the market value of Marsha's Department of Marks and Spencer Group PLC (MKS.L) climbed to 16 billion 900 million pounds in 1997.

The ASOS PLC (ASC.L), which was founded in 2000, has a market value of only 14 million at the time of October 2001, when the market value of Marks and Spencer Group PLC (MKS.L) Marsha has been cut to 7 billion 800 million pounds.

Although the annual sales scale of Marks and Spencer Group PLC, Marsha general store and ASOS PLC is still 5 times the gap, the former tax profit of 176 million 400 thousand pounds in fiscal year is more than two times that of the latter 80 million pounds.

Moreover, ASOS PLC, as an online retailer, has a huge growth potential for the more than 20 year old fashion oriented young consumer group, but Marks and Spencer Group PLC is the representative of the decline of traditional high street retail.

In September this year, Archie Norman, who was appointed chairman of the Marks and Spencer Group PLC and Marsha's department store, also criticized the famous brand that has been established for 133 years, and has been estranged from consumers for more than 15 years.

Although sales and profits announced earlier this month were better than market expectations, both the clothing and home sector and food sector's same store sales or the group's overall pre tax profits declined compared with the same period last year.

Marks and Spencer Group PLC, which has been back for more than 5 years, has been able to stabilize clothing sales after the new CEO Steve Rowe took office last year and led the reform and reorganization of the domestic and international markets. However, management has recently had to reduce the expansion of food business in response to the weakening of the local food market, after which food has been the growth engine of the group.

In contrast, ASOS PLC not only achieved record sales and profits in the fiscal year, but also raised the expected growth in revenue in the current fiscal year 2018.

The Group expects revenue to grow by 25%-30% this year, higher than previously set for the medium term growth target 20%-25%.

In the 2017 fiscal year ending August 31st, revenue rose 33.1% to 1 billion 923 million 600 thousand pounds, while the pre tax profit of 80 million pounds was 2.45 times the previous year's 32 million 700 thousand pounds.

The annual sales in the UK market increased by 15.7% to 698 million 200 thousand pounds, a growth rate of 27% slower than the previous year.

Nick Beighton said Britain's market share was further improved and its growth was "more satisfactory", and it is expected that this year's growth rate will not continue to decline.

Nick Beighton explained that the inflation of the pound after the devaluation of the euro referendum, which had an impact on the consumption power of the target group, the more than 20 year old youth, thus slowing down the growth. But this year, the group will maintain stable pricing in the local market and help them continue to win over the British traditional clothing retailers.

Marks and Spencer Group PLC Marsha general store also hopes that the growth track will be placed on the online retail business.

Steve Rowe put forward the goal of raising the online revenue of clothing and home sector from 18% to 1/3 before 2022, but warned the group to pay for the infrastructure of e-commerce.

Marks and Spencer Group PLC (MKS.L) and ASOS PLC (ASC.L) fell 0.03% and 0.15% to 301.3 pence and 5841 pence on Monday, respectively, with market capitalization at 4 billion 900 million pounds.

So far, Marks and Spencer Group PLC (MKS.L) has fallen by 13.6% so far in 2017, while ASOS PLC (ASC.L) has recorded a cumulative increase of 17.8%.

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