27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
- ASOS PLC (NYSE:ASOMY) reported an H1 FY23 revenue decrease of 8% Y/Y and 7% Y/Y in constant currencies (ex-Russia) to £1.84 billion.
- The top-line decline reflects planned capital allocation initiatives to improve profitability and a weak trading environment.
- In constant currencies, sales fell in the U.K. by 10% Y/Y, the U.S. by 7% Y/Y and the Rest of the World by 12% Y/Y (ex-Russia), while sales in Europe remained flat Y/Y.
- Adjusted gross margin contracted 20bps Y/Y to 42.9% in H1 FY23.
- The company reported adjusted EBIT of £(69.4) million vs. £26.2 million in H1 FY22, reflecting inflation and return rates normalisation related negative impact of around £180 million.
- Capital expenditure rose to £115.0 million from £86.5 million in the prior year quarter, and free cash outflow stood at £(262.7) million in H1 FY23 (vs. £(256.5) million a year ago).
- The company had cash and undrawn facilities of £408.6 million at the end of H1 FY23.
- Outlook: For H2 FY23, ASOS expects sales (ex-Russia in constant currencies) to decline in low double-digits Y/Y and adjusted gross margin to expand 200 bps Y/Y.
- The company projects an adjusted EBIT of £40 million-£60 million, with a margin of around 3%. It projects capital expenditure of £60 million-£85 million and free cash inflow of over £150 million.
- For FY23, ASOS anticipates free cash outflow of around £(100) million and capital expenditure of £175 million-£200 million. The company says it is on track to garner Driving Change agenda benefits of over £300 million.
- "We are improving our gross margin run rate in the face of significant headwinds, are starting to see the benefits of a repositioned stock profile, and are taking action to reduce the proportion of our sales which are not profitable. Initiatives are in place to drive a further c.£200m of benefit in the second half and I am very confident of our return to sustainable profit and cash generation in the second half of the year and beyond,” stated José Antonio Ramos Calamonte, CEO
- Price Action: ASOMY shares closed lower by 7.08% at $8.14 on Tuesday.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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