What's going on?

The evolution of ASOS continued with its annual results on Wednesday: the fashion brand�s stock rose almost 30% � even though its profit was 68% lower than a year ago.

What does this mean?

Last year wasn�t pretty for ASOS: its stock dropped 40% in December, after the company first warned it�d earn less than investors were expecting. And the fashionista stumbled again throughout the year, in part over logistics issues. Problems at its main European warehouse had a knock-on effect on the region�s deliveries, and disruptions in the US � where ASOS has racked up costs getting its kitten-heeled foot in the door � pushed tearful customers into rival Boohoo�s open arms.

While ASOS still grew its revenue last year, its profit fell markedly. And the company�s not entirely sure how much it�s going to make in the next 12 months, either. So why in the name of Anna Wintour did investors buy its stock?

Why should I care?

For markets: Trying out a whole new look.
ASOS announced plans to revamp its management team by hiring execs to oversee growth, people, and strategy. Personnel changes usually don’t bother investors, unless a high-profile CEO sashays away. But in ASOS�s case, they might hope new blood will revitalize the company and improve its growth trajectory. And since ASOS also announced that the worst of its logistics issues are now behind it, investors may be hoping the company’s profit margin will improve too.

The bigger picture: Low inflation looks good on you.
Data out on Wednesday showed inflation � the rate at which the prices of goods and services increase � was lower than expected in the eurozone last month, and not much higher in the UK. Still-low product prices, then, might�ve helped boost sales for retailers like ASOS. If only that were true in the US too: fresh data released on Wednesday showed September�s retail sales unexpectedly fell for the first time in seven months.