Proactive Investors - Run By Investors For Investors

Investors use Footasylum’s sharp sales growth in 2017 to bank profits

The trendy athleisure wear retailer issued shares at £1.64 as part of its November IPO, since when they’ve surged by 50%
footasylum store
Footasylum opened six new stores in the final couple of months of 2017 and now operates 65 across the UK

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.

READ: Liberum kicks off Footasylum coverage with gushing 'buy' note

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.

View full FOOT profile View Profile

Footasylum PLC Timeline

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use