Mar 19, 2019
Fast-fashion retailer Asos faces growth slowdown in trio of markets
Asos reported on Tuesday a sharp slowdown at its previously fast-growing US business as well as a more sluggish pace of expansion in the UK and EU. The fast-fashion retailer's shares were down as much as 13 per cent in early London trading, on track for their worst day since December when the group issued a profit warning. Retail revenue growth in the US edged up 4 per cent in the three months to the end of February to £76.6m, the London-based group said in a statement on Tuesday. Sales growth slowed in the UK and EU to 14 per cent and 12 per cent respectively, to £244.4m and £198.4m. The regions had been expanding at a 19 per cent and 18 per cent pace during the November quarter. In the rest of the world, growth climbed to 20 per cent, from a fall of 3 per cent previously. The group on Tuesday stuck with its guidance that sales will growth 15 per cent in the current financial year, with a retail gross margin of around minus 1.5 percentage points.
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