Asos has announced growth plans, where the retailer will target £7bn worth of sales over the next 3-4 years.
The move aims to achieve a compound annual growth rate of 15-20% and double its size in the UK and US. Asos also said it will embark on cost-saving efforts worth £50m-£100m.
Following the announcements, the group’s shares remained flat.
Commenting on the news, Laura Hoy, equity analyst at Hargreaves Lansdown, said: “ASOS the fast fashion darling has lost its spot in the limelight and its attempt to show how it plans to take a leading role again have fallen flat.”
‘It sought to restore investor confidence with a £7bn revenue target over the next 3 to 4 years. To get there the group will double its US and UK businesses and expand its own-brand offerings. However it’s a focus on increasing partner fulfilment that holds the key to longer-term success.”
“The market was decidedly apathetic about ASOS’ grand plans. Although the growth targets are ambitious, it’s hard to get excited about online retailers these days. They’ve enjoyed goldilocks conditions over the past 18 months and a return to normalcy means higher return rates and less incentive to shop online. Add that to supply chain woes and it’s a recipe for near-term volatility.”