Dec 17, 2018
Asos blames ‘bump’ as investors flee e-commerce crash
Who saw the shares crash by almost 40 per cent, experienced severe whiplash. Shares in the company plummeted to a four-year low after Asos revealed in an unscheduled trading update that sales growth would be slower than expected and that profit margins would fall from 4 per cent to 2 per cent as it cuts prices and spends more on marketing. Asos has had to cut prices sharply in its home market to maintain sales growth, even at a lower pace. Bestseller, the privately-owned Danish group that built up a 29 per cent stake in Asos in 2010 and is still its biggest shareholder, also remains supportive despite selling some shares this year. Even before Monday's fall, Asos shares were down more than 40 per cent from their March highs.
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