The share price of online retailer ASOS continued its spectacular climb since March – gaining 10% in early trading on Wednesday after it announced it expects revenue and profit to be significantly ahead of expectations.
With shares touching 1000p in March, shares in ASOS have now grown to reach 4636p – that’s over 350%.
Today in its pre-close trading update for the full financial year, it announced that revenue growth is expected to be up to 19% higher with profit before tax somewhere in between £130m-£150m.
One of the key drivers for this is that returns have not normalised, even with lock down restrictions easing. Customers are simply not comfortable in shipping returns back which means ASOS is generating more revenue and profits.
Understandably in a rather optimistic mood, ASOS added that it expects to be one of the ‘truly few’ leaders in fashion retail internationally.
Investors in Boohoo will also take confidence in this news – the share price of Boohoo also gained by 3% in early trading as the fellow AIM-listed retailer is due to reveal its performance in the coming weeks against the backdrop of the Leicester factory scandal.