×
401
Fashion Jobs
GAP
Assistant Visual Manager - Bluewater
Permanent · Kent
MICHAEL KORS (UK) LIMITED
Ecommerce Operations Manager, Emea
Permanent · London
SHISEIDO
Bareminerals Account Manager - Debenhams, Bury (37.5)
Permanent · BURY SAINT EDMUNDS
SHISEIDO
Bareminerals Business Manager - Debenhams, Liverpool (37.5)
Permanent · Liverpool
SHISEIDO
Bareminerals Account Manager - Debenhams, Ipswich (37.5)
Permanent · Ipswich
SHISEIDO
Shisiedo Group Fragrance Account Manager - John Lewis, Brent Cross (22.5)
Permanent · London
UNDERGROUND
PR Showroom And Social Media Internship
Internship · LONDON
UNDERGROUND
Music Content Internship
Internship · LONDON
FOREO
Senior Creative PR Storyteller
Permanent · London
SUITEX INTERNATIONAL MILANO SRL
Store Manager Luxury
Permanent · LONDON
YUGEN
Social Media & Creative Content Intern
Internship · LONDON
GAP
Sales Associate - Canary Wharf (12 Hours)
Permanent · LONDON
GAP
Senior Sales Associate - o2
Permanent · LONDON
GAP
Sales Associate - Canary Wharf (32 Hours)
Permanent · London
GAP
Sales Associate - Edinburgh 2 (12 Hours)
Permanent · Edinburgh
GAP
Operations Associate - Cheshire Oaks (16 Hours)
Permanent · Birkenhead
GAP
Sales Associate - Stratford
Permanent · London
GAP
Floor Manager - Gap k/b Wandsworth
Permanent · London
GAP
Floor Manager - Tunbridge Wells
Permanent · Royal Tunbridge Wells
GAP
Assistant Manager - Hatfield
Permanent · Hatfield
GAP
Sales Associate - Gretna (12 Hours)
Permanent · Gretna Green
GAP
Floor Manager - Gloucester Quays (40 Hours)
Permanent · Gloucester

Asos raises £247m in share placing, Bestseller buys more shares

Published
Apr 8, 2020
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

The news continued to pour out of Asos on Wednesday with the firm announcing the results of its share placing and the hundreds of millions of pounds it generated. 


Asos


The company placed just short of 16 million new shares at 1,560p each, raising around £247 million. As mentioned in its original placing announcement on Tuesday evening, this added up to a little less than 19% of the firm’s share capital prior to the placing. The placing price was a very slight premium to the closing share price of 1,559.5p as of Tuesday’s market close and was reportedly more than four times oversubscribed.

So who exactly bought the new shares? Well, the company said around 95% of them were allocated to the firm’s existing shareholders, including a pro rata allocation to its biggest shareholder Bestseller United A/S, the Danish fashion retail giant.

The firm’s directors and management team also took part, including CEO Nick Beighton, plus Adam Crozier, Ian Dyson, Mai Fyfield, Karen Geary, Luke Jensen, Mat Dunn, Robert Birge and Sarah Holland.

It’s all designed to get the company through the difficult months ahead, even if there’s no improvement in trading for the next year-and-a-half. 

The fundraising came alongside a new credit facility of between £60 million and £80 million and was in addition to the company having said on Tuesday that it believed it already had sufficient liquidity to get through the crisis.

The results of the placing were released the day after the company announced that its first half sales and profit had risen strongly but that the coronavirus has led to a 20%-25% sales drop in recent weeks. Given the almost total sales drops that some retailers relying on physical shops have seen, this is not a bad result and shows that online fashion shopping is still continuing during the crisis. 

And analysts believe that the company is in a relatively strong position, despite the challenges it faces at present. Sofie Willmott, Lead Retail Analyst at GlobalData, said:Asos’s carefully planned strategy for the peak trading period of 2019 clearly worked, with the online pureplay reporting impressive figures up against a troublesome 2018. However, it will not be able to build on this momentum to drive similar growth for the full year, with H2 set to be significantly disrupted by Covid-19.

Sales over the past three weeks – since lockdown and isolation measures have been implemented across many of its key markets –  have declined as customers struggle to justify making new purchases. However, [its] broad product offer across casualwear, loungewear and athleisure puts it in a better position than some of its competitors that rely heavily on occasion and partywear ranges, such as Boohoo and Quiz.”

GlobalData has already forecast UK clothing & footwear sales to decline 23.5% in 2020, but Wilmott added: “The online channel will fare better with expenditure expected to fall 10.8%, giving online retailers the opportunity to steal market share – particularly from Primark, TK Maxx and Next”.

However, she said online retailers can't assume it will be easy and Asos will need “to manage newness coming through without its usual photography and styling operations functioning as normal and with demand much lower”.

But at least its sales channel is open, unlike all those shuttered stores and some currently-closed webstores, “alleviating it from some of the excess inventory issues that other players will face when their stores and websites reopen”.

Copyright © 2020 FashionNetwork.com All rights reserved.