Asos Is Another Retail Casualty of a Weak Consumer: Street Wrap
- Weather, promotional environment are hurting sales, Citi says
- Shares drop as much as 41 percent, dragging down retail peers
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Asos Plc plunged the most in more than four years after cutting its sales outlook, showing that the online fashion retailer isn’t immune to the challenging weather and promotional environment that’s affecting the sector, according to analysts.
Sales growth in the year ending in August will be about 15 percent, Asos said in a statement Monday, down from a previous range of 20 percent to 25 percent. November was “significantly behind expectations,” with the company pointing to the backdrop of economic uncertainty across many major markets, together with a weakening in consumer confidence.