Asos (LON: ASC) has warned that its sales growth this year will be at the lower end of forecasts, sending shares down ten percent.
The popular fashion retailer said that whilst it was on track to reach profit targets, sales growth will be “likely towards the lower end” of the expected 25 – 30 percent range.
Asos reported positive results for the four months to June 30 of the year, with a 22 percent rise in sales to £823.9 million.
“I am pleased with the way the business has traded over the last four months and we are on track with our plans for the year,” said the group’s chief executive, Nick Beighton. “We remain confident of delivering another year of strong growth.”
Despite the slowing sales, the online-retailer has benefitted from the growing consumer choice to shop online instead of on the high street where retailers including Marks & Spencer are being forced to close stores and cut jobs.
Profits for the group are still expected to increase, with analysts predicting the fashion retailer to report full-year profits of £101 million, £22 million more than the year before.
Sofie Willmott, a senior retail analyst at GlobalData, has said that continuing high levels of growth will be a “challenging task” for Asos.
“With such a strong track record and high expectations from stakeholders, ASOS must continue to innovate at a rapid pace to remain a leader in the online market,” she added.
