Tuesday preview: ASOS reports trading update for fiscal third quarter

ASOS reports its latest trading update on Tuesday with analysts expecting the online fashion retailer to report robust results for the fiscal third quarter.

Numis said it sees strong top-line performance in the four months to 30 June, bolstered by continued demand in the UK and further progress in the US.

The broker also expects sales in the European Union to have improved, with a reduced impact from the terror attacks in France and the benefits of free returns across all territories. The Rest of the World is likely to move into positive territory as Australia and Russia start to "annualise-out weak sales/foreign exchange comps", Numis added.

“In all, we expect little change to forecasts, and believe that the recent weakness in Sterling gives the group additional firepower to reinforce its international pricing position,” said Numis analyst Andrew Wade.

“Retaining our ‘buy’ stance and our 4,600p target price, we remain confident in ASOS unique proposition and believe that this can support sustainable long term global growth.”

Investors will be closely watching for any remarks on how the UK’s EU referendum on 23 June have affected sales at ASOS.

In April the group reported an 18% increase in pre-tax profit in the first half to £21.2m, supported by growth in UK retail sales and investment in its technology and logistics.

At last week’s Capital Markets Day, ASOS gave further details into the development of its technology and mobile platform, customer acquisition and engagement, retail, design and production. ASOS announced the delivery of items will be improved with cut off times for next day delivery moving later, particularly in Germany.

“There was lots of interesting stuff about technology, customer recruitment and design but the key to the stock is the top line potential here and the roadmap to £1bn in the UK, £1bn in Europe and £700m was set out,” Peel Hunt said.

Tuesday 05 July

INTERIM DIVIDEND PAYMENT DATE
Marston's

QUARTERLY EX-DIVIDEND DATE
JP Morgan Chase & Co

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Retail Sales (EU) (10:00)

FINALS
Imagination Technologies Group, Polar Capital Technology Trust, Solid State

SPECIAL DIVIDEND PAYMENT DATE
Small Companies Dividend Trust

EGMS
B.S.D Crown Ltd (DI)

AGMS
Aberdeen Japan Investment Trust , B.S.D Crown Ltd (DI), Chariot Oil & Gas Ltd., Daily Internet , Northern Investors Co, Software Radio Technology, Software Radio Technology, Young & Co's Brewery 'A' Shares

TRADING ANNOUNCEMENTS
Carillion, Persimmon, The Gym Group

UK ECONOMIC ANNOUNCEMENTS
BRC Shop Price Index (00:10)

FINAL DIVIDEND PAYMENT DATE
Staffline Group