ASOS interim results

ASOS' latest results go to show just how wrong the market was to place their confidence in boosting their stock by as much as 85% at one point this year, with the shares on a steady decline since February, down 40%, and it's no surprise why either. Many had been hoping that the e-commerce firm would manage to spark a turnaround from strong retail sales data earlier this year. However, today's numbers show that ASOS is still going through its restructuring process. The company may be guiding for profitability and cash generation in H2 and beyond, but this would be at the mercy of the UK economy not falling into a recession from the Bank of England overtightening. But should the economy hold up better than expected over the next six months, hitting its guidance of 200bps of better gross margin may be achievable. Nonetheless, this remains a steep hill to climb given the current macroeconomic environment.