ASOS shares took a hit during Tuesday trading after the online retailer posted a trading update for the three months to February-end.
The fast fashion retailer said sales in the US had proved behind expectations, whilst sales in the UK and Europe also having slowed.
Specifically, sales growth in the UK and the rest of Europe were up by 14% and 12%, respectively, totalling £244.4 million and £198.4 million.
This proved a contraction from the 19% and 18% of growth noted during the November quarter.
Meanwhile in the rest of the world, growth was up 20% during the three month trading period.
Nick Beighton, CEO, commented:
“Group sales over the period increased by 13% and retail gross margin improved by 40bps. We continued to outperform in the UK with sales growth of 14%. Sales in Europe were up 12%, although France and Germany, our two largest markets, continue to be challenging.
Our US performance was behind our plans during the period. As our Atlanta warehouse went fully online, demand far exceeded our expectations. Whilst very encouraging for the longer term, this caused a significant short-term despatch back log which we have now cleared. These delayed shipments will be recognised in P3 and US trading is now regaining momentum. Our ROW segment returned to good growth of 20% after a disappointing Q1.”
Despite this, Beighton said the company “remain confident that we will meet guidance for the full year.”
The firm is set to publish its interim results next month.
Shares in ASOS (LON:ASC) are currently -8.12% as of (GMT).
Elsewhere in retail, Debenhams (LON:DEB) shares also fell on Tuesday on news that the company lost its fifth-largest investor.
