Tag Archives: ASOS

H&M Finally Begins Online Sales in the U.S.

By Reuters

H&M website clothing ecommerce internet etailing retailer

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Alamy

By Anna Ringstrom

STOCKHOLM — Budget fashion retailer Hennes & Mauritz launched an e-commerce operation in the U.S. on Thursday, taking on rivals in the world’s biggest online market.

The initiative is highly anticipated and follows successive delays. But retail experts say H&M may struggle to make the kind of profits from U.S. e-commerce enjoyed by pricier rivals.

H&M has prospered in the United States without a big online presence and is mindful of the likely impact on profit margins of the high shipping and return costs associated with such a vast country.

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However, with more and more shoppers buying clothes from home, the Swedish firm is speeding up its online roll-out to capture a slice of the growing market.

H&M has grown fast in recent years in the U.S., its second-biggest market, but has twice pulled back from announced dates for the online launch, blaming unexpected complexities in setting up an operation well-integrated with its stores.

Meanwhile, its main rival Inditex and others such as online e-store ASOS have expanded in the market, while Amazon (AMZN) is pushing further into apparel after eBay (EBAY) prospered with its fashion offering.

“You don’t want to lose out on being the port of call for younger shoppers. So H&M should really get in there,” Planet Retail consultant Isabel Cavill said.

Apparel has become one of the fastest-growing online retail segments. H&M has e-stores in eight European countries and says they are now as profitable as its bricks-and-mortar shops.

In North America, a quarter of clothing sales will take place on the Internet in 2030, up from 7 percent in 2011, Goldman Sachs (GS) predicts. Researcher Euromonitor International sees the U.S. online apparel market more than doubling in a decade to $41 billion in 2017.

“Generations of shoppers are growing up for whom the multi-channel is a basic expectation,” said Kantar Retail consultant Bryan Roberts.

Mind the Returns

H&M has been struggling to work out a viable logistics model in the country, where many shoppers expect free deliveries.

“H&M is low-price, quite low-margin and makes it work by selling very high volumes. An issue with that is very high costs for shipping and, most significantly, returns. It’s a particular problem in the U.S.,” Conlumino consultant Neil Saunders said.

Up to half of fashion items sold online are returned. At H&M, a shopper may well buy up to three times as many items than at Zara or ASOS. Analysts place average prices at Zara at least 40 percent above H&M’s, with ASOS in between.

H&M’s U.S. online store offers free shipping but charges for returns. Items bought online cannot be returned in stores.

“I’m particularly surprised by the lack of multichannel. …read more

Source: FULL ARTICLE at DailyFinance

Are ARM Holdings, Hargreaves Lansdown, and ASOS Titans of Tomorrow?

By David O’Hara, The Motley Fool

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LONDON — Micro-chip designer ARM Holdings  has long been a stock market darling. The huge rating that it traded on 10 years ago has been fully justified by its recent profitability.

Will buyers today be rewarded in the long term?

ARM has probably been the U.K.’s biggest beneficiary of the smartphone boom. In the last five years, its shares are up almost ninefold. In that time, dividends per share have more than doubled.

Its booming profits will be sure to attract competitors to its market. My concern is that, in the long term, shareholder returns could suffer as a consequence.

ARM currently trades on a 2013 price-to-earnings (P/E) ratio of 46.3 times expectations. The shares would fall hard from here if growth were to slow at any point in the next few years.

Hargreaves Lansdown
Investment shop-window Hargreaves Lansdown  dominates the U.K. market. The company continues to exploit its first-mover advantage, yielding impressive returns for shareholders.

Hargreaves Lansdown has long been traded on a high P/E. That hasn’t stopped the shares from making big returns. In the last five years, investors have seen their money increase almost fourfold. Dividends have risen at an even faster pace, reaching 15.8 pence per share in 2012 vs. 3 pence for 2007.

Hargreaves Lansdown‘s current P/E ratio is around twice that of the average FTSE 100 company. With earnings per share (EPS) growth of 16.7% expected in 2014, that now looks a little rich. There are also signs that competition is heating up since the launch of Charles Stanley’s “Direct” service at the beginning of the year.

ASOS
The investment case for ASOS  is simple: The company is blazing its way to becoming the world’s leading online clothing retailer.

Just look at the most recent December trading statement. U.K. sales up 34%. U.S. sales up 53%. EU sales up 65%. ASOS managed to increase sales 37% in the quarter ending in February. By comparison, FTSE 100 peer NEXT reported a 3.1% sales increase with its most recent results.

ASOS trades on a P/E of 65.8 times consensus 2013 forecasts, vs. 13.2 times for NEXT. Despite that huge difference, NEXT still has a market cap more than double that of ASOS.

Not only does ASOS need to deliver, it also needs the rest of the industry to continue trailing it to justify today’s price. That’s a lot to assume.

Although the growth that these companies have delivered in recent years is impressive, analysts here at The Motley Fool believe that they have found an even better growth share available in the market today. Like the three above, this company is a dominant player in its markets. Our team believes that 2013 could be the year that their pick delivers big returns. To find out which share they have identified and why they expect it to outperform, get the report “The Motley Fool’s Top Growth Share for 2013.” Even better, their report is completely free. Just click here to get your copy today.

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Source: FULL ARTICLE at DailyFinance

3 FTSE Shares Hitting New Highs

By Alan Oscroft, The Motley Fool

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LONDON — The FTSE 100 is looking a bit more positive today following a number of upbeat company results, climbing 0.81% to 6,397 points by 7:40 a.m. EST. The index of top U.K. shares has even peeked above the 6,400 level today, so its 52-week high of 6,412 is under threat again.

But what of individual companies setting new share-price records? Here are three doing just that today.

WPP
Shares in WPP reached a 52-week record of 1,091 pence this morning, following on from last week’s record results. Despite economic difficulties in the U.S., Europe, and China, the advertising giant enjoyed a 3.5% rise in revenue after other regions, including the Middle East, proved robust.

WPP shares are now up more than 30% over the past 12 months and have more than three-bagged since early 2009. But at 13.6, the firm’s forward price-to-earnings ratio is still only around the FTSE‘s long-term average. Forecasts for 2013 suggest modest earnings growth with a 3% dividend.

GKN
GKN shares have made a similar gain over the past year, also putting on more than 30% to reach a new 52-week high today of 286 pence. And again, the latest boost came from strong results last week. The automotive and aerospace parts maker reported sales up 13%, adjusted pre-tax profit up 19%, and earnings per share up 17%. The dividend was raised by 20%.

And GKN shares might still be a bargain, with forecasts for this year putting them on a P/E of only 10, dropping to nine for 2014, with dividends of 3% and 3.4%, respectively.

ASOS
Shares in online fashion retailer ASOS are flying again, reaching an all-time record of 29.15 pounds today — easily beating the 24 pound levels the shares were at in mid-2011 before the wheels temporarily came off.

International expansion has been going well, and ASOS looks set to dominate the world of online clothing sales. But after such a meteoric price rise, the shares are now on a forward P/E of nearly 60, so there will have to be a further quadrupling in earnings to bring that down around the FTSE average.

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The article 3 FTSE Shares Hitting New Highs originally appeared on Fool.com.

Alan does not own any shares mentioned in this article.
The Motley Fool has a disclosure policy.
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Source: FULL ARTICLE at DailyFinance

3 High-Growth Shares That Made Investors Rich

By David O’Hara, The Motley Fool

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LONDON — For many people, the entire point of investing in shares is to find a big winner. Here is the lowdown on three companies that have grown up fast.

1. ARM Holdings  
ARM Holdings‘ business model is totally different from AMD‘s or Intel‘s: ARM does not make processors, but rather licenses its designs to other manufacturers. ARM is also not interested in the desktop PC market. Its processors have always been optimized for small size, low power, and low heat output. This makes them ideal for mobile phones. ARM has dominated this market since the mid-1990s.

ARM‘s shares began another strong run upward following the emergence of the smartphone. Growth then took on a new phase as the tablet market took off.

With the shares trading on 40.8 times forecasts for 2014, shareholders cannot afford slip-ups.

2. ASOS
I’m old enough to remember the days when ASOS was called As Seen On Screen and the shares changed hands for less than 10 pence. Today, shares in the company cost 2,780 pence. Chief executive Nick Robertson currently owns 10.2% of the company. At today’s market capitalization, his stake is worth more than 200 million pounds.

ASOS is well on the way to becoming the world’s leading pure-play online clothing retailer. For 2007, ASOS made sales of 42.6 million pounds. ASOS has since grown fast; last December, the company made total sales of 78 million pounds in just one month.

ASOS shares trade on a 2014 price-to-earnings ratio of 42.6 times forecast earnings.

3. Hargreaves Lansdown
Today, Hargreaves Lansdown is the U.K.’s shop window for savings and investment products. In the last five years, Hargreaves Lansdown has grown sales by an average of 19.3% per annum. This has produced average annual earnings-per-share growth of 25.7% a year. Dividend growth has been even stronger. In the last five years, the payout has risen 39.3% per year on average.

The company is expected to continue increasing earnings and dividends for the next two years. EPS is expected to hit 24.4 pence for 2014, with a dividend of 30.4 pence per share. That puts Hargreaves Lansdown on a 2014 P/E of 24.4, with an expected yield of 3.5%.

Hargreaves Lansdown looks like a great mix of income and growth. Analysts at The Motley Fool have prepared free reports on their picks for each of these investing strategies. Our top income pick comes with a 5.7% yield and real upside potential. Read all about this share in our free report “The Motley Fool’s Top Income Share For 2013”. Meanwhile, the world leader that we feature in “The Motley Fool’s Top Growth Share For 2013” is fast moving into new markets while still enjoying a strong position in older industries.

The article 3 High-Growth Shares That Made Investors Rich originally appeared on Fool.com.

David does not own shares in any of the above companies.
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Source: FULL ARTICLE at DailyFinance

One Stunning Metallic Top, Two Ways to Wear It

By Chi Diem Chau

As we inch closer to Spring, we’re looking for new ways to add a refreshing touch to our cold weather looks. Metallics, as seen on Estéban Cortazar lamé t-shirt, and showing you how you can easily wear this look from day to night. For a casual off-duty day, pair it with a textural tweed jacket, white jeans, and wedge sneakers for look that’s high on cool factor and comfort. Once the sun drops, keep in line with the same color palette but switch out the jeans for a ladylike skirt and finish off the look with a sleek blazer, boots, and eye-catching arm candy. Like what you see? Shop every piece below.

Shop left to right: ASOS two-pack hex cuff bracelets ($32)

Source: FULL ARTICLE at fashionologie