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ASOS PLC (LSE:ASC) has strengthened its balance sheet and cut costs by selling a fulfilment warehouse in Atlanta, USA for a net gain of around £48 million. The online fashion retailer said it had assigned the site's lease to a global consumer brand and sold the related automation assets to a member of DHL Group.

Investors remain cautious on the European retail sector, though Next PLC (LSE:NXT) and Tesco PLC (LSE:TSCO) continue to rank among the most crowded long positions in the industry, according to UBS. The bank's latest 'crowding' analysis found overall positioning among institutional investors in retail remains negative, with the sector described as "short skewed" relative to the wider European market.

Mothballed Atlanta facility could offer further upside, though declining sales trends remain a concern. Deutsche Bank has raised its price target on ASOS PLC (LSE:ASC), the online fashion retailer, to 400p from 375p after the company's sale of its Lichfield distribution centre to Marks and Spencer Group PLC (LSE:MKS) for net proceeds of at least £66 million.

Marks and Spencer Group PLC;s (LSE:MKS) £67.5 million purchase of a distribution centre from online specialist ASOS PLC (LSE:ASC) gives the FTSE 100 retailer a faster and cheaper route to expanding its online clothing business as it pushes to double UK non-food digital sales. Analysts at Shore Capital said the acquisition of the 437,000 sq ft site was a surprise but “welcome component” of M&S's long-term online…

ASOS PLC (LSE:ASC) shares jumped 10% to 241p on Monday after the online fashion retailer agreed to dispose of an unwanted distribution warehouse for a £66 million net profit.  The company said the sale of its Lichfield facility would also bring annual cash savings of £6 million for rent and occupancy costs.