All I Want For Christmas… Is ASOS plc!

It’s hard to see ASOS plc (LON:ASC) as a company in decline.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Do you remember how excited you were as a kid on Christmas Day? In our family home, I had the agonising wait to open presents until after Christmas dinner! 12 hours after waking, I finally was able to tear off the wrapping paper and alight my eyes on the book I had asked for, the toy carefully selected from the well-thumbed Argos catalogue — and the dreaded Christmas jumper, for which I’d thank my relative with a fixed smile on my face.

Fast-forward too many years for my liking and although we maintained the tradition of waiting until we’ve had our fill of turkey and sprouts, I no longer dread the soft, pliable gift that’s obviously clothing of some sort. That’s because sharing Christmas lists is all done online in my family now, so we send links to our chosen items — and for years now, all clothing and accessories for the teens to twentysomethings has been selected from ASOS (LSE: ASC). 

The online fashion retailer sells over 850 global and local brands, and that’s on top of its own-label collection. The company’s ambition is to become the #1 destination for fashion-conscious twentysomethings, and with as wide a range as ASOS’s, you can be there’ll be more than something for everyone. No wonder it’s the second most visited fashion website on the planet!

And it’s not just the comprehensive selection to choose from that makes it a standout company, in my opinion: the ease of which customers can place an order, have it delivered quickly and return items if they choose ranks among the best I’ve seen from any company, online or otherwise. 

If you’ve been following the company over the last 12 months, you’ll know that its share price has weakened this year. Partly, that’s due to an 11% dip in profit after tax from 2013. But consider that revenue increased by 27% in 2014, and gross profit lifted by 22%, and it’s hard to see a company in decline.

Personally, I think the share price reflects the year’s bad news and that the coming three to five years will see the company continue to push its online experience worldwide — management have, perhaps belatedly, come to terms with the fact that not all countries are like the UK and favour credit/debit cards to pay for their wares, but now ASOS is in the process of making its systems more user-friendly no matter where they are, not least adding websites in different character sets (Russian and Chinese, for example).

To that, I say Счастливого Рождества and 圣诞快乐 — and may it be a happy Christmas for ASOS investors!

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Sam Robson owns shares of ASOS. The Motley Fool UK owns shares of ASOS. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Company Comment

Hand of person putting wood cube block with word VALUE on wooden table
Company Comment

Value has been building behind the Diageo share price

Despite the business growing, the Diageo share price first reached its current level just over 19 months ago and hasn't…

Read more »

Older couple walking in park
Investing Articles

5 stocks to buy for high and rising dividend income

I can see a host of shares to buy on the FTSE 100 offering me exceptional levels of income. Here…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

I don’t care if FTSE 100 shares fall further, I’m buying them today

I'm happy to go shopping for FTSE 100 shares today, even though I accept that they could have further to…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

Rolls-Royce shares are down 18% in a month and I’m finally going to buy them

Investors who bought Rolls-Royce shares have been repeatedly disappointed, but I'm willing to take a chance on them before they…

Read more »

Storytelling image of a multiethnic senior couple in love - Elderly married couple dating outdoors, love emotions and feelings
Investing Articles

How I’d invest £10k in a Stocks and Shares ISA today

Now looks like a good time to buy cheap FTSE 100 shares inside a Stocks and Shares ISA. These are…

Read more »

Black father holding daughter in a field of cows
Investing Articles

Today’s financial crisis is the perfect moment to buy cheap shares

I'm building a portfolio of FTSE 100 stocks by purchasing cheap shares whenever I see an opportunity. There's a good…

Read more »

Long-term vs short-term investing concept on a staircase
Investing Articles

I’d buy Tesco shares in October to bag their 5.4% yield 

Tesco shares have fallen lately but I think this makes them attractively valued for a dividend stock I would aim…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

I would do anything to hold Diageo in my portfolio (but I won’t do that)

Diageo is one of my favourite stocks on the entire FTSE 100 and I'd love to hold it, but one…

Read more »