ASOS shares slump as sales plummet
Timilehin Adejumobi
1 min read
ASOS (ASOS.L), one of the pioneers of online fashion retailing, swung to a first-half loss, hit by a squeeze on household budgets and forecast a further drop in sales, sending its shares sharply lower.
The stock was down 11% on Wednesday, extending losses over the last year to 57%, after the company forecast a worse than previously expected “low double-digit” sales decline in its second half.
Sales fell 15% in its second quarter, with that trend continuing into March and April.
ASOS led by CEO José Antonio Ramos Calamonte announced an overhaul of its business model last October. His plan focuses on profitable sales rather than top-line growth.
ASOS forecast second-half core earnings of 40-60 million pounds ($50-$76 million).
“I am very confident of our return to sustainable profit and cash generation in the second half of the year and beyond,” Ramos Calamonte said.
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