Business

Asos shares fall 14% on poor outlook

A model walks on an in-house catwalk at the ASOS headquarters in London Image copyright Reuters

Shares in online fashion firm Asos have fallen 14% in early trading after it downgraded its profit forecast for the coming financial year.

The retailer said it expected profits for the 12 months to August 2015 to be "at a similar level" to the year recently ended.

It also said that a fire at its main warehouse in Barnsley in June resulted in lost sales of £25m to £30m.

But insurance payments meant annual profits would meet forecasts, it said.

In the three months to the end of August, its sales went up by 15% overall. UK sales saw a 33% increase, while international sales rose 6%.

The Barnsley warehouse is the firm's major global distribution centre.

Asos said at the time that the fire had affected about 20% of the stock held at the site.

The fashion firm said about 70% of its total stock of £159m was held at the warehouse.

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Last Updated at 26 Sep 2017, 10:23 GMT *Chart shows local time ASOS intraday chart
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The fire came just two weeks after Asos issued a profit warning, blaming the strength of the pound, which hurt overseas sales and forced it to launch a series of promotions.

But in its latest statement, the firm hailed its "strong" UK performance and said profits before tax for the year would be in line with market expectations.

"In the new financial year, we'll make significant investments in our international pricing and proposition, as well as in our logistical infrastructure and technology platform," said chief executive Nick Robertson.

"As a result, we expect profit before tax for the year to 31 August 2015 to be at a similar level to 2013-14."

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