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Footasylum takes a dive

Footasylum takes a dive

For a company so new to market, a one-day, 48 per cent fall in the share price just isn’t what you want. But trainer specialist Footasylum (FOOT) – an offshoot of JD Sports (JD.) – suffered just this fate on the release of its 2018 annual numbers. Admittedly, these figures met market expectations, but projections for the coming year put some analysts on edge. Chief financial officer Danielle Davies confirmed that the contraction in the gross margin, down 90 basis points to 45 per cent, is likely to continue, especially as the business grows its wholesale and online operations. Shifting old stock is also a problem, so further discounting should be expected.

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