Online fashion firm ASOS has overtaken Marks & Spencer’s valuation this week as ecommerce continues to catch the high street.
The tipping point had been predicted earlier this year that ASOS, which was founded 17 years ago, was on course to overtake Marks & Spencer in terms of market capitalisation.
At the end of August Mark Photiades of Cantor Fitzgerald noted that the businesses were valued more closely than they had ever been with ASOS, at that point, valued at £4.9bn and M&S at £5.03bn.
Photiades said he believed it was only a matter of time before ASOS exceed M&S’s value and that it would be a “seminal moment”. That seminal moment occurred yesterday when ASOS shares gained 2% taking its valuation to £4.89bn while M&S was just behind at £4.88bn.
However, M&S remains far bigger than ASOS (market valuation is based on future profit potential) though it has struggled with profitability in recent years and has been working hard to revive its fashion business. Earlier this month M&S revealed H1 (six-month) revenues up 2.6% at £5.13bn while last month ASOS revealed it had achieved full-year revenues of £1.92bn in the 12 months to 31 August.
