Asos shares slide to rise despite profit

Reuters

Online fashion retailer Asos has seen its shares slump by 9% in early trading, despite posting a 10% rise in half-year profits to £29.9 m.

The company also reported retail sales of £1.13 bn for the six months to 28. February, up 27% compared to the same period in the previous year.

The shares fell by Asos said it would reinvest up to £250m in its operations.

Nicholas Hyett, of Hargreaves Lansdown, the company is said to have cost “a life seem”.

“All the traders to grow needs to invest with a 20% plus per year, but what is disappointing for Asos, the tendency is to under-investment estimate your need of a few tens of millions per year,” he added.

“The rapid growth of any meaningful margin does not provide benefits, only the frustration increases.”

So far this year, Asos has spent around £95m on your business.

Half of it is gone, technology and transformation programs, and half of the physical infrastructure, on its supply chain and head office.

Asos chief executive Nick Beighton, said: “These results show a strong trade at the same time, as we made significant investments in our future.

“Our customer retention is going from strength to strength and we have achieved more than a billion site visits for the first time.

“In addition to our investment in our employees and our technology, we are accelerating the investment in our logistics and distribution, the Foundation stone for the £4bn of net sales, a further step in the development of Asos in the world, the number one destination for fashion-loving 20-year-old.”