Footasylum PLC (LON:FOOT) shares have surged by 50% since the ‘on-trend’ fashion retailer joined London’s AIM market towards the end of 2017 but investors were given a small dose of reality on Thursday.
The company – which was set up by the founders of JD Sport Fashion PLC (LON:JD.) back in 2005 – issued its first trading statement which the market seemed to use to cash in and bank some profit.
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In early trading on Thursday, the stock was down 3.9% to 243.3p.
The numbers themselves weren’t too bad. Revenues in the three months to the end of December jumped by more than a third to £89.8mln (Q4 2016: £67.3mln).
Internet sales
Sales over the ten months to December 30 also rose by a similar percentage to £173mln (Q4 2016: £128.4mln).
Footasylum said all three sales channels – stores, eCommerce and wholesale – experienced year-on-year growth, while eCommerce accounted for a higher proportion of total revenues than a year earlier.
That may seem insignificant, but given changing consumer habits – more people are doing their shopping online as opposed to on the high street – it is a healthy sign.
As for the outlook, management – headed up by chief executive Clare Nesbitt – said trading is in line with expectations and it expects to publish its maiden set of full-year results for the 12 months to February 24, in June.