Neil Wilson, chief market analyst at Markets.com, discusses with Proactive London's Andrew Scott a profit warning issued this morning from the online fashion retailer ASOS PLC (LON:ASC).
The company said it has seen a “significant deterioration” in trading in November – a key month for the group – while increased discounting and unseasonably warm weather over the past three months reduced its average selling price.
ASOS now expects sales to increase 15% for the year to August 2019, compared to its previous forecast of 20-25%. The group also revised down its earnings (EBIT) margin to 2% from 3%. Gross margins are seen 150bps lower, against previous guidance for margins to be flat at 49.9%.