{"id":10467,"date":"2018-12-17T18:04:48","date_gmt":"2018-12-17T18:04:48","guid":{"rendered":"http:\/\/www.fiveminutesspare.com\/news\/asos-profits-hit-by-fashion-price-cutting\/"},"modified":"2018-12-18T12:35:45","modified_gmt":"2018-12-18T12:35:45","slug":"looks-like-its-not-just-the-high-steet-suffering-as-asos-profits-are-hit","status":"publish","type":"post","link":"https:\/\/www.fiveminutesspare.com\/news\/looks-like-its-not-just-the-high-steet-suffering-as-asos-profits-are-hit\/","title":{"rendered":"Looks Like its Not Just The High Steet Suffering as Asos profits are hit"},"content":{"rendered":"<p>On-Line fashion retailer\u00a0<strong>Asos<\/strong>\u00a0has reported \u2018significant deterioration\u2019 in trading indicating that it is not just the High Street who is suffering from a slow down in consumer spending. Although\u00a0sales grew by 15% this was below the expected number of around 25% and this sent the shaper price tumbling. The shares which traded well north\u00a0of \u00a375 early this year had been drifting down\u00a0in anticipation of disappointing\u00a0numbers however the announcement pushed them over a cliff. They fell below \u00a325 at one stage yesterday before recovering to close at<span style=\"font-size: 1rem;\">\u00a0\u00a326.14.<\/span><\/p>\n<p>What should be more worrying for shareholders is that indication that profit margins were likely to fall to around 2% which is wafer thin and leaves very little room for error either in sales growth or rising\u00a0costs.\u00a0In the last published figures, turnover was around \u00a32,417m and pre-tax\u00a0profits about \u00a3160m. Thats 6.6% not too bad for a retailer however at 2% they would have to turn over \u00a37.976M just to stand still profits wise. That is not happening.<\/p>\n<p>The uncertainty around Brexit may be having some effect, however\u00a0perhaps its a trend away from our current &#8220;wear it and chuck it&#8221; culture, after all, Asos\u2019 key demographic of twenty-somethings are increasingly becoming focused on climate change and the things that they can do to help.<\/p>\n<p>We do like ASOS and will continue\u00a0to buy from them, however, maybe its time for them to stop competing on price and focus a bit more on quality and service.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On-Line fashion retailer\u00a0Asos\u00a0has reported \u2018significant deterioration\u2019 in trading indicating that it is not just the High Street who is suffering from a slow down in consumer spending. Although\u00a0sales grew by 15% this was below the expected number of around 25% and this sent the shaper price tumbling. The shares which traded well north\u00a0of \u00a375 early&#8230;<\/p>\n","protected":false},"author":1,"featured_media":10478,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"om_disable_all_campaigns":false,"footnotes":""},"categories":[34,5],"tags":[440],"class_list":["post-10467","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-uk-news","tag-asos"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/posts\/10467","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/comments?post=10467"}],"version-history":[{"count":2,"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/posts\/10467\/revisions"}],"predecessor-version":[{"id":10479,"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/posts\/10467\/revisions\/10479"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/media\/10478"}],"wp:attachment":[{"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/media?parent=10467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/categories?post=10467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fiveminutesspare.com\/news\/wp-json\/wp\/v2\/tags?post=10467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}