Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — Asos Plc lowered its profitability forecast for the full year as the U.K.'s largest online-only fashion retailer reported slowing sales growth, with revenue abroad held back by a rising pound.
Retail sales increased 25 percent in fiscal third quarter through May, the London-based retailer said in a statement today, compared with 26 percent growth in the two months through February. The retailer gets about 62 percent of sales from its international division, where revenue rose 17 percent. U.K. retail sales rose 43 percent.
Asos now estimates that earnings before interest and taxes in the year through August to amount to about 4.5 percent of sales, compared with a previous margin forecast of 6.5 percent. The company also said increased promotions will also hold back profitability.
By Katarina Gustafsson; Editors: David Risser, Tom Lavell, Paul Jarvis
