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Online Merchants Lead Europe Retailers Back Toward Pandemic Lows

  • Asos warning and Boohoo sales miss deal latest blows to sector
  • Fund managers say industry to face more pain in the near-term

Europe’s retail stocks are heading back towards pandemic lows. And after Thursday’s profit warning from Asos Plc and the first UK sales decline in Boohoo Group Plc’s history, it’s online merchants that are leading them there.

Asos shares sunk as much as 28% on Thursday, falling to the lowest since August 2010. The warning sent tremors through larger peer Zalando SE, which slid as much as 12% and pulled the Stoxx 600 Retail Index down to levels last seen in March 2020, when Covid-19 shock was sweeping through every business sector. Boohoo slumped as much as 19%, hitting its lowest since June 2016.