Asos Shares Up Following Trading Statement – Demand Metrics Stabilise

Asos issued an update on trading for the 12 months ended 31 August, which saw sales and profit in line with market expectations.

Asos shares increased 2.95% at the time of writing.

Full-year sales, profit before tax, and net debt are all anticipated to be in the range of market expectations. However, despite seeing growth in sales for June and July, August saw weaker than anticipated sales.

According to Asos, its weaker sales were reflected by accelerating inflationary pressures on consumers and a slow start to Autumn/Winter shopping.

As a result, profit is anticipated to be around the bottom end of guidance.

The company remains cautious about consumer spending, as inflationary pressures remain a threat. However, it continues to make strategic progress and manage the business for the current environment.

Asos reports its full-year results on 12 October.

Consumer Metrics:

Consumer metrics are one of our main focuses here at MoPh Markets, and after a 70% plummet in Asos’s share price this year, is a recovery on the horizon.

Source: MoPh Markets

When analysing Asos Twitter mentions, between June and July, there was a clear decline in mentions from its peak. However, in the month of August, there was a spike.

Qualitative research demonstrates that the majority of tweets pointed to complaints about delivery and Asos’ service. Simultaneously, we have seen a 30% decline in Asos shares in the last month.

Source: Semrush

Traffic to Asos’ website has dipped since the start of the year. However, it has since stabilised, although, given current consumer spending pressures, we will be watching closely for signs of a further decline or a recovery.

Source: Google Trends

Elsewhere, Google Trends data shows search interest in Asos over the past 5 years has steadily declined.

Although there has been a recent decline in current demand metrics, we are seeing some stabilisation in Twitter mentions and website traffic and will be keeping an eye on how they move over the next couple of months.

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