ASOS's Changes to its Distribution Network in U.S. Could Bring Risks -- Market Talk

Dow Jones2025-01-15

0942 GMT - ASOS's changes to its distribution network should enable the company to increase cost efficiency, but its offer in the U.S. could become less competitive, RBC Capital Markets analysts Richard Chamberlain and Manjari Dhar say. The London-listed online fashion retailer said its U.S. customers will be served from the company's automated U.K. fulfillment center and a smaller U.S. site. It also intends to roll out its Partner Fulfils program and mothball its Atlanta distribution center. The U.S. represents around 13% of group sales, according to RBC Capital Markets estimates. Shares are up 1.7% at 387 pence. (andrea.figueras@wsj.com)

(END) Dow Jones Newswires

January 15, 2025 04:42 ET (09:42 GMT)

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