The highly valued online retailer has issued a reassuring update. For the 3 months to 28 February 2015 retail sales grew by +19% (+22% on a constant currency basis), with strong growth continuing in the UK at +30%. They have also seen encouraging momentum in international markets during the quarter at +12% (+16% on a constant currency basis) following the successful roll out of ‘zonal pricing capability’ and planned price investments. However, the margin decline is clearly a concern.
The Group’s investments in warehouse and IT platforms are on track with profit before tax for the full year is anticipated to be in line with market expectations. Consensus estimates are for pre-tax profit of £45.05m and eps of 41.38p putting the shares on a crazy rating of 92x forecast current year earnings.
Online rival boohoo.com, who we have also commented on, looks significantly better value given…
Access the all latest company comments on Investor's Champion.
Not yet registered? It's free to register. Register now.
Register on Investor's Champion
Access the all latest company comments on Investor's Champion.
Premium Content
Premium content provides more in-depth information on fascinating investment stories and research to help make your money go further.
Access Premium Content through individual credits (we only want you to read what you are interested in) or through an annual subscription, which works out as only 25p per day – a small price to guide you through the investing maze!
Subscription
Gain access to all our excellent content for just £90 per year, that’s just 25p per day for financial freedom.
In depth coverage of many of the world’s great companies
Breaking news on potential upcoming disasters
Unique insights from our top research team
Credits
Get access to our premium content for as little as £3.20 per article.