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Why these online retailers will go far
As British online retailer ASOS' latest results show that growth slowed in the US and Australia, Retail Analyst Rahul Sharma from Neev Capital says that "despite some pockets of weakness, overall the sales report was much stronger than expected".
But on the earnings side, he says things were "a little disappointing" because ASOS is investing in to newer markets like China and they’ve still got a way to go in terms of merchandising, in particular in the US.
ASOS said retail sales rose 38 percent to GBP 335.7 million in the four months to 31 December. Its shares fell as much as 6.1 percent on the news.
The company was founded in 2000 by current chief executive Nick Robertson and has been a success story in British retailing; Its shares have more than doubled over the last year, giving it a market value of GBP 5.8 billion.
Rahul adds that for retailers in general it's now "crucial to have the right online platform". He thinks that the likes of John Lewis and Next have "found a way to deliver conveniently to the customer but also have good products they can sell", and as a result are great examples of this.
01:41 minutes
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