5th Sep 2022 11:24
(Alliance News) - Asos PLC has privately told analysts it expects annual pretax profit at the lower end of its guidance range, the Sunday Times reported.
Asos shares were 6.4% lower at 641.00 pence each in London on Monday morning.
Asos in June said it expects adjusted pretax profit in the range of GBP20 million to GBP60 million. Asos ended its financial year in late-August.
The Sunday Times reported the online only retailer has now briefed City analysts that it expects profit in the lower end of that range, blaming high customer clothing return rates.
Adjusted pretax profit in financial 2021 amounted to GBP193.6 million, so Asos expects a fall of as much as 90%.
It also has indicated to analysts that sales for the year will fall short of the 9.8% advance pencilled in by consensus, according to the newspaper.
The Sunday Times said one analyst was "uneasy" about the way Asos is tempering expectations. The Sunday Times reported a source close to Asos said these briefings are standard pre-close procedure for the company.
https://www.thetimes.co.uk/article/retail-blow-as-matalan-asos-and-joules-take-a-hit-pd9mcv0pz
Asos in June lowered annual guidance after its third quarter was hit by inflationary pressures and a high clothing return rate.
In January, and before the outbreak of war in Ukraine, Asos had guided to revenue growth around 10% to 15% and adjusted pretax profit of GBP110 million to GBP140 million.
For the nine months ended May, revenue was up by just 0.8% on-year at GBP2.99 billion, a far cry from the sort of growth Asos enjoyed at the height of the pandemic, as bricks and mortar competitors had their stores shuttered by lockdowns.
By Eric Cunha; [email protected]
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