UPDATE ZALANDO

ASOS X-READ

Great set of numbers from ASOS this morning as they reported a 30% rise in total sales for the four months to 30 June and said it expects full-year sales growth to be at the upper end of the 20-25% range.

Sales in the UK were up 28%, while sales in the US rose 53% and EU sales advanced 32%.

ASOS beat expectations despite a challenging environment across the sector.

For us this is a positive cross read to our favoured play in the sector Zalando. We continue to think that ZAL is a structural winner as consumption decisions shift away from the high street to online.

Patience will be needed into Q2s but we would be happy to add or initiate a position here.

Currently -7%. Stay Long or ADD and keep the faith!

 

ZALANDO: BUY
BUY INTO THE UNSTOPPABLE CONSUMER SHIFT TO ONLINE

Tuesday • 19 January 2016 • 08:56

Poor communication meant we wanted to see the print before getting involved. But FY revs +33.5% – 33.8% is inline with the guide of 33-35%, though maybe a touch light of cons, but adj ebit of 96-114m is a beat vs cons 92m vs a tough comp.

We continue to think that ZAL is a structural winner as consumption decisions shift away from the high street to online. The 20% pullback YTD provides a good entry point. BUY