ASOS (LON:ASC) - business might be booming but the valuation looks crazy!
The pre close trading update from online fashion retailer ASOS for the year ended 31 March 2009 has received a large amount of press coverage. The numbers continue to impress it’s just the valuation that surely beggars belief.
The numbers were indeed excellent with sales for the 12 months to 31st March 2009 up 104% to £165m and profit before tax expected to be ahead, but only slightly, of market expectations. As at 31st March 2009 the business had £13.6m of cash so presents a very different picture to those indebted retail peers. At the operating level the business continues to perform admirably in the face of an extremely tough retail climate, begging the question, is it all too good to be true? Can a business aimed primarily at fashion forward 16-34 year olds really be bucking the…