ASOS Stock (LON: ASC) sank on Monday after online retailers predicted profits would fall and CEO Nick Beighton said he had resigned immediately.
ASOS stock fell more than 10% due to early trade before rebound.
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Following a strong year supported by lockdowns and lower returns, ASOS has been marked by supply chain issues that will lead to a revision of pre-tax profits from £110 million to £140 million the following year. He said it was being done.
“ASOS has significantly increased trading lockdowns, albeit due to less noticeable casual wear, as core demographics were stuck at home. That meant low return rates and bringing XL margins. But Tailwinds have been eased and Asos Bubble is ruptured,” said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. I mentioned it.
Asos follows Boohoo with a calm update release, pointing out that there are fewer than the sparkling fast fashion industry.
“The market had the feeling that life was a bit of a struggle for Assos given the recent disastrous updates from rival Boo-Hoo. Director of AJ Bell.
“The size of the ASOS issue appears to be underestimated, but it’s no surprise that the company will say goodbye to its CEO. Nick Beaton, through issues that have returned quite a few years ago, I’ve had a hard time piloting the ship.”
“For ASOS, the outlook for the nearest period is somewhat bleak. We expect sales growth to be very dramatically slower. Cost pressures and supply chain issues may remain intact for a while. In other words, profit margins are compressed. And consumer uncertainty can lead to unstable trading patterns.”
“ASOS is leading pre-tax profits of £110 million to £140 million, which is 35% below the market consensus forecast of £193 million if it scores a midpoint in its profit range. It’s there.”
