Online Retailing  

Asos need a growth spurt

The online retailer's surge in the market seems to be slowing down
 Asos's shares slide
 
 

Asos’s shares have slid dramatically once again following decreased growth in sales.

The company has developed at a rapid pace since its inception in 2000 but a weak recent growth in the UK and US has resulted in a 10 percent slide in shares according to the latest figures.

Compared to the ten percent growth that was expected, the UK have only experienced four percent, while in America, growth has slid from 149 percent to 69 percent.

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Asos will be looking at ways to stem the tide, as this represents a general trend over the last month, which has seen total shares drop 24 percent, amounting to 40 percent for the entire last 12 months.

It is not all doom and gloom however as they still dominate the online fashion market with their blend of cheap offerings and high street goods from places like River Island and Ralph Lauren.

Pre-tax profits are still in line with expectations of £40 million, according to Chief Executive, Nick Robertson. This is an increase on last year’s 28.6 million.

There are also seven million registered users across 191 countries globally, attracting an extra 18.5 million unique visitors every month.

However the slump in growth will concern Asos, as their international influence seems to be slowing down too.

Sales overseas have increased a seemingly impressive 63 percent to £77 million, but this is once again a decrease on last quarter’s figures which enjoyed a 93 percent increase – possibly indicating that the novelty factor of site introductions to the likes of Spain, Italy and Australia has already worn off.

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