Asos Plunges as Profit Warning Raises Pressure on CEO Beighton
- Shares fall as much as 22% on online fashion retailer’s report
- Earnings may slump as much as 71% in latest forecast downgrade
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Asos Plc plunged after the online fashion retailer warned that earnings will slump this year, putting pressure on Chief Executive Officer Nick Beighton as he tries to fix distribution issues and prop up a falling stock price.
Profit before tax may fall as much as 71%, Asos forecast Thursday. Shifting to new technology at U.S. and European warehouses is taking longer than expected, affecting stock availability, according to the company, known for products such as leopard-print bodysuits. The shares fell as much as 22%, wiping 513 million pounds ($640 million) off the company’s market value.