Asos Share Discussion Threads

[factsandfigures] 28/7/2022 05:58

CHINESE FAST FASHION BRAND, SHEIN, IS NOW A HUGE PROBLEM FOR BOOHOO & ASOS
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Chinese fast-fashion giant SHEIN uses its tax advantages to sell products at significantly less than its British competitors and has become a massive thorn in the side of BOOHOO and ASOS – despite only operating in Europe for seven years.

Global sales at SHEIN are expected to top $20 Billion (£14.6 Billion) this year, which will eclipse most of the world's largest retailers including Zara-owner Inditex and H&M.

In the UK alone, retail analysts estimate SHEIN’s sales are now worth at least £300 Million per year and are rising rapidly.

The investment bank Morgan Stanley states that Chinese tax exemptions mean SHEIN’s cost base is up to 20% lower than its UK rivals allowing it to undercut Boohoo by 25% and ASOS by 30%.

SHEIN typically uses its efficient supply chain and customer behaviour data taken from social media to add thousands of new products to its website every day – just to stoke up demand.

SHEIN is free from Chinese VAT and consumer taxes and is subject to lower corporation taxes simply because it manufactures in China and then only sells its goods outside of China.

For tax purposes, SHEIN clothing arriving in the UK by post, is usually deemed to be of sufficiently low value that it does NOT attract import duty - unlike clothes delivered to British distribution centres in shipping containers favoured by BOOHOO and ASOS.

Take a look at the problem for yourselves at WWW.SHEIN.CO.UK

[dissentingvoices] 25/7/2022 08:49

THE BRITISH ECONOMY IS STRUGGLING & THE NUMBER OF PROFIT WARNINGS IS ON THE RISE
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Including Boohoo PLC and ASOS PLC, the number of companies telling investors that their profits would be significantly lower than market expectations rose by 66% during the first 6 months of 2022.

The cause of all the problems is blatantly obvious – rising inflation is increasing manufacturing and supplier costs.

In a recently released report titled The Oncoming Storm from consultants, EY-Parthenon it warns investors that 70 businesses have already issued at least two consecutive Profit Warnings in the last 12 months.



In the case of fashion retailer Boohoo PLC, it has already issued four consecutive profit warnings during the last 15 months, and expectations remain high for a 5th Boohoo profit warning coming within the next few months.

[jackson83] 24/7/2022 08:45

probably see 500p before xmas

[jackson83] 24/7/2022 08:42

I will buy more when we are under 800p

[bigbigdave] 23/7/2022 06:30

Evil's short going the wrong way :o)

[dijon52] 22/7/2022 16:37

Grain deal will save 'billions' of people facing famine, Turkey saysWhile there remains scepticism around the chances of its success, the agreement reached on grain exports offers hope that food prices may begin to fall.Much of the world's manufacturers get their grain from Ukraine - but the blockade has put pressure on supply.Turkish president Recep Tayyip Erdogan says the deal will help "billions" of people facing famine as a result of the blockade, and that it will ease food inflation. He said it could be a "turning point that will revive the hope for peace".The agreement will be put in place within the next few weeks, and seek to shift around five million tonnes a month - back to pre-war levels.

[dancing piranha] 22/7/2022 14:45

The real Simon Cawkwell has used "Live Ink" for the last few years - just saying!

[factsandfigures] 22/7/2022 13:48

DEFINITELY NOT GOOD NEWS FOR FAST FASHION RETAILERS
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Data from the Office for National Statistics showed that retail sales fell in June amid the cost-of-living crisis.

Sales dipped 0.1% on the month following a revised 0.8% fall in May and versus expectations for a 0.3% decline.

The ONS data showed that the Queen’s Platinum Jubilee failed to give shops the boost many had expected.

While food sales volumes rose by 3.1% thanks to the celebrations, non-food store sales fell 0.7% over the month. CLOTHING SALES WERE DOWN BY 4.7%, while sales of household goods declined by 3.7%

[malcolm caton] 21/7/2022 18:31

Is £2.50 the target for your net wealth

[simon_cawkwell] 21/7/2022 18:26

Gentlemen,

I have today shorted a further £650,000 worth of stock.

High inflation and high interest rates are not good signs to be long in a lot of sectors especially online retailers.Margins wiil erode much further and much quicker.

It has had a bit of relief rally.

My target is still £2.50

Simon.

[buy2sell1] 20/7/2022 10:12

Data from the Office for National Statistics showed that consumer price inflation hit a fresh 40-year high of 9.4% in June as the cost-of-living crisis intensified.

This was up from 9.1% in May and above consensus expectations of 9.3%

Food and fuel prices drove the increase. The ONS said that food and non-alcoholic drinks rose by 9.8% in the year to June, up from 8.7% in May and the highest since March 2009, while petrol and diesel prices surged 42.3%, the highest rate since before the start of the historical series in January 1989. Transport costs overall were 15.2% higher.

Laura Suter from Stockbrokers AJ Bell warned:

"Another larger-than-expected increase in inflation is turning up the heat on the UK’s economy - and on the spending power of the nation. It could also be the signal for the Bank of England to hike rates by 0.5% next month, less than 24 hours after the Governor, Andrew Bailey, said he was prepared to take stronger action.

"It’s the same story as previous months: petrol, home energy bills, food prices and mortgage costs are all pushing up the inflation rate as they keep on heading upwards. This highlights the Bank’s conundrum, as one of the biggest contributors to inflation at the moment is mortgage costs, which are a direct result of the rate setters increasing Base Rate significantly since December."

[ukneonboy] 20/7/2022 09:55

ITS MORE BAD NEWS FOR ASOS PLC - CONSUMERS ARE SPENDING LESS ON FAST FASHION
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Pay increases for most people aren't keeping up with rising prices and it's going to get worse going forward.

According to the Office for National Statistics average wages in the UK, not including bonuses, rose by only 4.3% between March and May.

But when you take inflation into account, UK wages actually fell by 2.8% compared to 12 months ago.

[wolfofhounslow] 18/7/2022 10:01

What a price to get in at...

[buy2sell1] 18/7/2022 08:00

Neither the Bank of England or City economists think inflation has peaked yet.

UK interest rates will undoubtedly have to rise before Xmas

[bigbigdave] 15/7/2022 15:26

Facts and Figures, all in the price, inflation has peaked.

[wolfofhounslow] 15/7/2022 08:06

It will be a lot higher by year end

[ny boy] 15/7/2022 07:40

Took another chunk yesterdays in that mini sell off, bottoming out process underway, expecting 1200/1300 by year end dyor one to stay patient with,add on dips imo

[wolfofhounslow] 15/7/2022 07:30

A lot priced in at current share price Idiot

[factsandfigures] 15/7/2022 06:30

It's not exactly rocket science and you certainly don't need an M.B.A in Business from Harvard to realise ASOS plc is in deep, deep trouble.

Rising Inflation + Household Incomes getting squeezed = Consumers Spending Less

[wolfofhounslow] 13/7/2022 06:47

BREAKING | UK economy rebounds by 0.5% despite cost-of-living crisis.

[dissentingvoices] 12/7/2022 12:25

MORE BAD NEWS FOR FAST FASHION RETAILERS
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The latest data released by the British Retail Consortium (BRC) showed that retail sales FELL again during June 2022, as surging inflation and the cost-of-living crisis caused shoppers to cut spending.

Total sales fell 1.0% last month, compared to an increase of 10.4% in June 2021.

In the three months to June 2022, food sales increased 2.2% on a total basis

But non-food-sales slid 3.3% on a total basis.

Total retail sales have now DECLINED for three months in a row for the first time since the start of the CoVid pandemic in 2020.

[simon666] 12/7/2022 10:05

Very high short positions will keep this share price subdued.
Asos need to contain costs this year. I don't like Boohoo but I concur with their recent policy of charging £1.99 on returns. Asos and Boohoo have a huge amount of returns turnover. By introducing a small returns charge may encourage some to hold on to the goods.