Asos Shares Drop as Retailer's Growth Comes at a Higher Cost
- Investments to win international customers dent margins
- Company’s shares post biggest decline since November
Asos packing
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Asos Plc shares posted their biggest drop in five months as concerns mounted over the U.K. online fashion retailer’s increasing cost of growth.
Price cuts to lure overseas customers were the main reason for a 40 basis-point contraction in Asos’s retail gross margin in the first half, according to Chief Executive Officer Nick Beighton. The CEO expects the drop in sterling to drive up sourcing costs through the end of the year.