Online fashion retailer Asos has issued a profit warning due to its performance in November coming in “significantly behind” expectations.
This is despite a 14% sales increase in its first quarter trading and September and October coming in “broadly in line” with expectations.
However economic uncertainty plus weaker consumer confidence in the “important trading month” of November led to “the weakest growth in online clothing sales in recent years”.
As a result Asos announced it had cut its expectations for the financial year to the end of August from 25-20% to 15% growth. It has also haved its full-year EBIT margin from 4% to 2%.
Asos CEO Nick Beighton said: “We achieved 14% sales growth in a difficult market, but in the light of a significant downturn in November, we think it’s prudent to recalibrate our expectations for the full year. We are taking all appropriate actions and our ambitions for ASOS have not changed.”
In a conference call to analysts Beighton added that the current fashion market is experiencing an “unprecedented level of discounting”.