Shares of online fashion retailer Asos have lost more than a quarter of their value when a profit issue was offered earlier today. Asos revenue was up by 12% in four months until the end of June compared to the sales last year.
Chief executive Nick Beighton said annual pre-tax profits were now expected to come in between £30m and £35m, compared with pretax profits of £102m last year.
Asos have said sale growths in the US and Europe had been held back with problems at its warehouses.
Mr Beighton told investors: “Embedding the change from the major overhaul of infrastructure and technology in our US and European warehouses has taken longer than we had anticipated, impacting our stock availability, sales and cost base in these regions.”
He added: “We are clear on the root causes of the operational challenges we have had, are making progress on resolving them, and now expect to complete these projects by the end of September.
“Despite these short-term challenges, the move to a multi-site logistics infrastructure will enable us to offer customers across the world our market leading proposition, facilitate our future growth, as well as leading to longer-term efficiency benefits.”
Shares of Asos fell by up to 27%. This is the third time in eight months the online retailer has issued a profits warning.
