By most measures, Asos’ (ASC) latest results were not bad. In fact, the numbers were fairly positive.

In the year to 31 August 2019, the group revenue rose 13% to £2,733 million. In the UK, retail sales increased by 15% to £993.4 million. Even Asos’ international revenue, which is nearly 40% larger than its UK sales, rose 11%.

No wonder investors are cheered by these numbers. Asos share price jumped a stunning 28% following the release of its full-year financial statements on Wednesday.

Pre-tax profits, however, slumped to £33.1 million from £102 million. This was caused investments in its platform and warehouse disruption . The CEO said this was ‘disappointing’ because the management ‘underestimated the impacts of large scale operational change being executed on two continents simultaneously.’

However, with its share price surging from multi-year lows, Asos can breathe a sigh of relief – for now. Technically, a base breakout has been generated here and this upward dynamic – unless countermanded – will set the stock up for a further rally. At the time of writing, prices are up another 4% to 3,450p.

Not to forget is Boohoo Group (BOO), one of Asos’ online competitors. The fast-growing retailer is trading near its all-time highs (see below). Expect a rally into the 300p round number level.

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