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Shares in Asos crashed over 20% on Thursday after the online fashion retailer warned profits would be lower than forecast.

Asos said that “operational issues” related to upgrading its warehouses had hit sales in the US and Europe.

As a result of the teething problems, Asos said on Thursday that profits were likely to be between £30 million and £35 million this year. It had previously said they would be £55 million. Asos also cut its full-year sales growth forecast from 15% to 12%.

It represents the third profit warning in less than a year. The company also warned on profits in December and March.

CEO Nick Beighton said: “Whilst we are making good progress in improving customer engagement, our recent performance in the EU and US was held back by operational issues associated with our transformational warehouse programmes.

“Embedding the change from the major overhaul of infrastructure and technology in our US and European warehouses has taken longer than we had anticipated, impacting our stock availability, sales and cost base in these regions.”

 

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