Asos turnaround shows Covid has been kind to online retailers | Nils Pratley
Clothes supplier botched projects in 2018 and 2019 but lockdown last year sent sales soaring
It’s amazing now to recall that stock market investors initially thought lockdowns would be bad for online clothing retailers. Shares in Asos roughly halved to £13 during the month of March 2020. They now stand at £53 as business has boomed.
Best of all for shareholders, the company has stopped shooting itself in the foot. Asos over-stretched in 2018 and 2019 by trying to build mega-warehouses in Berlin and Atlanta at the same. It botched both projects, issued three profit warnings in rapid succession, and made outsiders wonder if an impressive revenue line would ever yield solid profits.
Source: Business – The Guardian