ASOS share price: 4 things to watch out for in its interim results
The online fashion retailer has vowed to tighten its returns policy, angering its customers and sending its share price sliding ahead of its interim results next week.
![ASOS](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/bg_trader_charts_337581299.jpg/jcr:content/renditions/original-size.webp)
ASOS shares fell more than 5% to £31.56 on Thursday after the online fashion retailer said it plans to toughen up its return policy much to the annoyance of its customers.
The news comes just a week away from the company unveiling its interim results, with investors eager to see if the business plans to increase profits and improve sales in the US.
Here are 4 things to look out for ahead of ASOS' interim results on April 10:
Tougher returns policy sends ASOS share price lower
ASOS emailed customers this week to tell them that it is planning to tighten up its returns policy in the hope of clamping down on shoppers who regularly buys clothes at its online store only to send many of them back.
It warned its customers that serial returners could see their accounts deactivated if the company suspects that individuals have worn items and then attempt to return them.
‘We need to make sure our returns remain sustainable for us and for the environment, so if we notice an unusual pattern, we might investigate and take action,’ the company said.
A recent survey by Barclaycard showed that consumers in the UK return around £7 billion worth of purchases each year.
US business slowing down
ASOS’ US business has underperformed with sales slowing down in its first quarter, with retail sales up just 4% to £76.6 million.
‘As our Atlanta warehouse went fully online, demand far exceeded our expectations,’ ASOS CEO Nick Beighton said. ‘Whilst very encouraging for the longer term, this caused a significant short-term despatch back log which we have now cleared.’
‘These delayed shipments will be recognised in P3 and US trading is now regaining momentum. Our ROW segment returned to good growth of 20% after a disappointing Q1,’ he added.
Lacklustre growth in Germany and France
Sales in Europe during the first quarter of the fiscal year increased by 12%, although the company continues to see weaker growth in Germany and France, the retailer’s largest markets.
ASOS pledged to increase investment in price and marketing in both of these markets, with the business eager to show investors that it can deliver stronger growth in the second half of the year and meet its full-year guidance of sales growth of circa 15%.
Strong UK sales growth continues
Offsetting weaker growth in Europe and the US, the UK market saw sales increase by 14% to £244.4 million.
ASOS will need the UK to continue to grow at this pace if it is to calm investors who have grown fearful that the company’s seemingly unrelenting growth is starting to waver.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/European-central-bank-banner.jpg/jcr:content/renditions/original-size.webp)
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.