ASOS profit warning sends shares of rivals lower
Shares of U.K. fashion retailers traded down on Monday morning after ASOS PLC (ASC.LN) warned of difficult November trading and cut its full-year outlook.
Shares of ASOS tumbled as much as 39% after the profit warning, helping send the shares of its rivals into the red. Boohoo Group PLC (BOO.LN) attempted to reassure investors by saying its trading performance continued to be strong and it booked record sales on Black Friday, but this wasn’t enough to avert a 9.5% decrease in its share price, which fell to 165.70 pence.
At 0829 GMT, shares of Quiz PLC (QUIZ.LN) were down 14% to 29.10 pence, while Next PLC (NXT.LN) shares traded 3.8% lower at 4,172 pence.
The year has been a difficult one for the U.K. high street, with historic department store House of Fraser going into administration in August and fashion retailer Debenhams PLC (DEB.LN) announcing extensive store closures amid poor trading. This latest warning from ecommerce company ASOS suggests it’s not just brick-and-mortar retailers that are being hit by weakened consumer confidence and an economic slowdown that appears to be overtaking the whole of Europe.
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