Tuesday preview: Asos to report 'positive momentum' in full-year

Online fashion retailer Asos is expected to report “a continuation of positive momentum” in full-year sales on Tuesday, according to HSBC analysts.

The popular website is forecast to report a 19% jump in revenue to £1.16bn as busy shoppers increasingly turn online for their clothing purchases.

Earnings before interest, depreciation and amortisation (EBITDA) of £74m is estimated, compared to £62m the previous year, while profit before tax is expected to remain at £47m due to a strong pound against other currencies.

“Positive momentum should ensure a full year outturn in line with expectation: Asos has already delivered a positive third quarter (10 months) trading update with strong sales growth and better-than-expected gross margins,” HSBC said in a note to clients.

“We expect that continued momentum will drive increased confidence in the long-term potential of the business, driving consensus upgrades over time and improving investor sentiment.”

In July Asos reported a 21% jump in group retail sales, with growth across the UK, the US, Europe and rest of the world.

Tuesday 20 October

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