Boohoo Group PLC (LON:BOO) was in tears Monday morning after an update to reassure investors amid a profit warning from fellow online clothing retailer ASOS plc (LON:ASC) failed to stop a double-digit plunge.
The AIM 100 firm issued a short update saying its trading performance “remained strong, with record Black Friday sales across the group” and said it was continuing to trade “comfortably in line with market expectations”.
READ: Boohoo responds to claims it broke advertising rules with misleading promotions
The group is scheduled to issue a more detailed trading update for the fourth months to 31 December on 15 January 2019 but rushed out the brief statement after ASOS shares lost around a third of their value as it lowered its full-year forecasts.
ASOS said trading in November, a “very material month” in terms of sales and cash margin, had been “significantly behind expectations” while economic uncertainty and weak consumer confidence had dented online clothing sales growth.
Meanwhile, Boohoo’s misfortune adds to issues for the firm earlier this month when the BBC Watchdog Live investigative programme alleged that the company broke advertising rules regarding time-limited promotions.
In early trading Monday, Boohoo shares were down 9.8% at 165p while ASOS shares were down 37.6% at 2,611p.