Asos: quarterly sales miss estimates, shares drop

(CercleFinance.com) - Asos shares were down over 2% on Tuesday after the British online fashion retailer reported quarterly sales that missed the consensus.


Total sales for the three months ended 28 February increased 13% to 659 million pounds, missing analysts' average estimate of 667 million pounds.

The miss was "driven by continued weakness in the EU and disruption in the US," analysts at UBS said.

Nick Beighton, Asos' CEO, indeed said that France and Germany, two of the company's largest markets, continue to be "challenging."

"Our US performance was behind our plans during the period," he added.

Asos said demand far exceeded expectations in the US in the past quarter, causing a significant "short-term despatch back log" at its Atlanta warehouse.

However, in a note to clients, analysts at Liberum wrote that they do not see "light as yet at the end of what is proving to be a difficult year."

Asos shares are currently down 2.1% at 3,148.5 pence in London.

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