September 23, 2020

The British textile chain Asos sinks more than 40% in the stock market after cutting forecasts | Economy

The British textile chain Asos sinks more than 40% in the stock market after cutting forecasts | Economy



The actions of the British textile chain Asos record falls of more than 40% on Monday in the London Stock Exchange, after the multiplatform signature has cut its forecasts for the whole of its current fiscal year, which will end next August, as a result of the deterioration of its sales and margins during the past month of November.

In this way, the textile firm has cut its forecast of sales growth for the whole year to 15%, compared to the previous range of between 20% and 25%, while now foresees a fall in its gross margin of 150 basis points, when previously I trusted to keep it stable at 49.9%.

In the first three months of its fiscal year, which began last September, Asos sales totaled 656 million pounds (730 million euros), 13.7% above its turnover in the same period of the year. precedent, with a growth of 13.4% of its retail sales, up to 640 million pounds (712 million euros). Specifically, Asos retail sales in the United Kingdom increased by 19% annually in the first three months of the year, while in the EU they increased by 18% and in the US by 13%.

"Although we recorded solid sales growth of 14%, we experienced a significant deterioration during the month of November and conditions continue to be difficult," the company said in a statement to the London Stock Exchange, where it requires adjustment to the low of its projections for the whole of its current fiscal year. "While operations in September and October were in line with our expectations, November, a very important month for us in terms of sales and liquidity margin prospects, was significantly behind expectations," the company added.

"The current context of economic uncertainty in our main markets and the weakening of consumer confidence has caused the weakest growth in sales on-line in recent years. In this way, we have recalibrated our expectations for the year, "the company added.

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