ASOMY
ASOS Plc·Consumer Cyclical
3.59
10.462%(+0.34)
Close PriceLast Updated: — ET
52W L: $2.4952W H: $4.89
ASOS Plc·Consumer Cyclical
Mothballed Atlanta facility could offer further upside, though declining sales trends remain a concern. Deutsche Bank has raised its price target on ASOS PLC (LSE:ASC), the online fashion retailer, to 400p from 375p after the company's sale of its Lichfield distribution centre to Marks and Spencer Group PLC (LSE:MKS) for net proceeds of at least £66 million.
Marks and Spencer Group PLC;s (LSE:MKS) £67.5 million purchase of a distribution centre from online specialist ASOS PLC (LSE:ASC) gives the FTSE 100 retailer a faster and cheaper route to expanding its online clothing business as it pushes to double UK non-food digital sales. Analysts at Shore Capital said the acquisition of the 437,000 sq ft site was a surprise but “welcome component” of M&S's long-term online strategy, giving the group additional logistics capacity at what they described as a reasonable price.
ASOS PLC (LSE:ASC) shares jumped 10% to 241p on Monday after the online fashion retailer agreed to dispose of an unwanted distribution warehouse for a £66 million net profit. The company said the sale of its Lichfield facility would also bring annual cash savings of £6 million for rent and occupancy costs.
ASOS said on Monday it will sell its Lichfield fulfilment centre to rival Marks & Spencer for 66 million pounds ($89.7 million), as the British retailer looks to simplify operations and dispose of non-core assets.
ASOS PLC (LSE:ASC) has agreed to sell its Lichfield fulfilment centre to Marks and Spencer Group PLC (LSE:MKS) as the online fashion retailer continues efforts to strengthen its balance sheet and cut costs. The group said the £67.5 million disposal will generate net proceeds of at least £66 million and annual cash savings of about £6 million from lower rent and occupancy costs.
Deutsche Bank says ASOS PLC (LSE:ASC) has “regained its mojo” after four years of restructuring, with the online fashion retailer showing early signs of a return to growth. The broker reiterated its Buy rating and 375p price target, implying meaningful upside from the last closing price of 250p.
