Asos: shares hammered after guidance cut
(CercleFinance.com) - British online fashion retailer Asos has cut its expectations for the current financial year after it experienced a "significant deterioration" in the key trading month of November.
In a trading update this morning, the company said total sales grew by 14% as reported in the three months to 30 November, but also noted that conditions remain "challenging."
Whilst trading in September and October was broadly in line with expectations, November - a very material month from both a sales and cash margin perspective - was "significantly behind expectations," it said.
Economic uncertainty, together with a weakening in consumer confidence, has led to the "weakest growth in online clothing sales in recent years," the company said.
For the current financial year to August 2019, Asos now expects sales growth of around 15%, from +20%-25% previously, with an EBIT margin of about 2%, from approximately 4% previously.
The stock has been hammered after this warning, with the London-listed shares diving 40% to 2,500 pence.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
In a trading update this morning, the company said total sales grew by 14% as reported in the three months to 30 November, but also noted that conditions remain "challenging."
Whilst trading in September and October was broadly in line with expectations, November - a very material month from both a sales and cash margin perspective - was "significantly behind expectations," it said.
Economic uncertainty, together with a weakening in consumer confidence, has led to the "weakest growth in online clothing sales in recent years," the company said.
For the current financial year to August 2019, Asos now expects sales growth of around 15%, from +20%-25% previously, with an EBIT margin of about 2%, from approximately 4% previously.
The stock has been hammered after this warning, with the London-listed shares diving 40% to 2,500 pence.
Copyright (c) 2018 CercleFinance.com. All rights reserved.