Investors will be eager to hear what online retailer ASOS PLC's (LSE:ASC) forecasts are in the wake of its disposal of the Topshop and Topman brands to Danish multinational clothing business Bestseller.
ASOS netted £118 million from the sale, which has helped to lower the group’s debt position.
It garnered a mixed response from analysts, although Berenberg recently contended that ASOS is “beginning to bring stability with a lowered and refreshed inventory position… and an improved cost-to-sales ratio, even in the face of top-line pressure”.
Yet ASOS, alongside online fashion rival Boohoo Group PLC (AIM:BOO), faces existential issues around reduced customer spending, enhanced competition and pricing pressure.
Earlier this year, broker Shore Capital Markets cut ASOS’ full-year profit guidance from £85 million to £67 million, although this was prior to the Topshop sale.
ASOS’ full-year results are due on Tuesday, 5 November.